BQ Scotland Issue 14

www.bq-magazine.co.uk

ISSUE FOURTEEN: WINTER 2013

RULE CHANGING Legal niceties that could arise SOMETHING CRAFTY Frothy ways to change tastes SHOESTRING CINEMA Scots film-makers show how LEGENDARY TRIMMER Haircutter with soul and spirit ISSUE FOURTEEN: WINTER 2013: SCOTLAND EDITION

MARXISM MASTERED And it’s social investment next

BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS

SCOTLAND EDITION

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WELCOME

BUSINESS QUARTER: WINTER 13: issue FOURTEEN Welcome to BQ Scotland. We hope you enjoy reading this magazine and get time to re-charge your batteries before embarking on 2014, a momentous year for Scotland and the UK. No matter how you look at life, the next 12 months will be defining for our great little nation. We sincerely hope that the Referendum debate - which will take up a lot of our thoughts and energy - will be conducted in the spirit of fairness and respect for all people, parties and points of view. The vote in September 2014 is a very serious one with fundamental implications for business and our economic and trading relationship with the rest of the United Kingdom.

At BQ Scotland, we would encourage business people to speak out and explain the pros and cons of an independent Scotland.

Those with the privilege of having a vote will be making a deeply emotional choice, but they also need to understand any economic impacts. There will be unintended consequences, so the more light that is shed on the implications of such a transformational change, then the better informed we shall all be.

For many Scottish-based businesses, England remains our biggest market. This will not change after the vote in September. But we, as Scots, will need to present a more open and honest dialogue with our neighbours, many of whom feel disappointed and hurt by Scotland’s bid to go it alone.

The nationalistic rhetoric that blames Westminster for all of Scotland’s ills is far too simplistic and dangerously divisive.

Our policy-makers, both in Edinburgh and Westminster, also need to up their game dramatically on other essential aspects of our economic life too. They have to understand our UK banking system is still not fixed and remains dysfunctional. The revelations about Royal Bank of Scotland and accusations that its Global Restructuring Group has been exploiting struggling companies are shocking, but somehow not unexpected. There have been so many business horror stories emerging from this brutal recession. However, if good

companies have indeed been deliberately killed off to save the bank’s bacon then this is truly scandalous. Let us hope that RBS’s new boss, Ross McEwan, who started in October, gets to the bottom of this and sorts it out.

We desperately need the banks to do better for UK business.

While the constitutional debate will grab the headlines in 2014, businesses need to be certain there is a sharper focus on rebuilding trust in our banking system – and that will require much bolder political will and imagination from all of the political parties.

It requires our regulators to get far tougher on the abuses in the system and a concerted effort to end a culture driven by greed and self-interest.

Of course, we’ll have great moments to savour and enjoy next year from Celtic Connections, to Glasgow 2014, and the Ryder Cup in Gleneagles. The prospect of Usain Bolt breaking a world record at the Commonwealth Games is tantalising, and let’s hope that our rugby players can raise their game to make a real challenge in the RBS Six Nations. Let’s even cheer England’s over-paid footballers in the World Cup finals in Brazil!

That would show how grown-up we are.

BQ Scotland is also delighted to announce the inaugural Scottish Export Awards, launched in the spring of 2014. We think this is a fantastic way to showcase the strength and depth of Scotland’s exporters. We hope you enjoy reading more about exporting in our companion magazine, BQ2 which is out now.

Please put the date of these awards, 28th May 2014, at the Glasgow Science Centre, in your diary. There are seven categories, including Scottish Exporter of the Year.

Meantime, we would like to wish all of our BQ readers a prosperous New Year, and a bulging order book with all your bills settled in good time.

CONTACTS room501 ltd Christopher March Managing Director e: chris@room501.co.uk Bryan Hoare Director e: bryan@room501.co.uk EditorIAL Kenny Kemp Editor e: editor@bq-scotland.co.uk Karen Peattie Editorial Design & production room501 e: studio@room501.co.uk Photography KG Photography e: info@kgphotography.co.uk advertising David Hughes e: davidh@room501.co.uk t: 07789 397 526 Michelle Farquhar e: michelle@room501.co.uk t: 07551 171 211

room501 Publishing Ltd, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT www.room501.co.uk room501 was formed from a partnership of directors who, combined, have many years of experience in contract publishing, print, marketing, sales and advertising and distribution. We are a passionate, dedicated company that strives to help you to meet your overall business needs and requirements.

All contents copyright © 2013 room501 Ltd. All rights reserved.

While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. All information is correct at time of going to print, December 2013. room501 Publishing Ltd is part of BE Group, the UK’s market leading business improvement specialists. www.be-group.co.uk

Kenny Kemp, Editor BQ Scotland

SCOTLAND EDITION

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BUSINESS QUARTER | WINTER 13

CONTE BUSINESS QUARTER: WINTER 13

THE MAJORITY WHO MATTER

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Features 22 BACK TO BASE Globetrotter returns to new Scots challenge

28 law and order Why justice is surely democratic

34 A miller’s tale The success story behind craft beers

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40 film on water

ON THE WATERFRONT

Why Scots excel at film-making

50 business lunch Hairdresser who became a legend

75 turning tide Proof engineering is coming home to Scotland

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TENTS SCOTLAND EDITION

A CUT ABOVE THE REST

46 commercial property Evidence of markets picking up again

Regulars

56 Wine Kiwi’s kicks come with a try at French wine

58 motors £88,000 worth of vehicle put to the test

06 ON THE RECORD Beware of overloading your staff and the pros and cons of the independence bid

10 NEWS A deeper awareness of what goes on

20 AS I SEE IT Why Boston’s firing up Scotland

62 Fashion

50 THINK SMART: ACT LOCAL

Barbour’s journey from fishermen to the world’s fashionistas

68 Equipment Take a ride in a roller with attitude – and one which bites

80 a bit of a chat Weir’s barometer check is convincing

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ON THE RECORD

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>> Is information overload going to swamp your employees?

The technological workplace of the future will place massive demands on the multi-taskers. But there needs to be room for longer-term thinking.

Nick Terry reports Every year Scottish businesses take on thousands of new people. Meanwhile Scotland’s ‘knowledge economy’ is fast becoming a clique that politicians like to pump out as a matter of course, yet few are considering how it is changing the way we work. For employees starting out, the work place can be daunting and scary for those faced with arriving on time and long hours of concentration on a single task. Already there is a gap between the needs and expectations of young people entering the workplace and the requirements of the employers who pay the wages.

Technology is making young people smarter, more sociable, more expressive and more

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creative and although they are more digitally distracted than ever, they are much better than adults at dealing with regular disruption at work. Research commissioned by ACAS, the advisory, conciliation and arbitration service, has suggested more must be done to support new people in work and this includes workplace buddies, mentors and talking to family members who have work experience.

ACAS has suggested a smoother transition to the world of work and that workplaces must be more receptive and welcoming to new starters.

However, there is also another issue that faces employers in the longer term. The attention spans of an emerging generation

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are being tested more than ever through the usage of smartphones and other tablet devices. More time is spent online switching between websites while new apps become the next social media fix. Multi-tasking refers to switching attention between tasks. This has an economic cost because a lot of mental effort has been spent on the switch, rather than the task itself. Therefore, as a result of this ‘juggling effect’, the brain becomes less devoted to deeper thinking.

Encountering the digital world is not necessarily about switching between tasks, instead, it as been suggested, it is like a chef keeping an eye on several pots cooking on a hob, checking each one

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to ensure the meal is not spoiled.

Lydia Plowman, a professor in education and technology at the University of Edinburgh, recently studied how pre-school children interacted with dual screens, such as iPads and television.

“Over the last few years, I’ve become increasingly interested in the ways in which technology has been used for leisure, work and educational purposes in the home, with a focus on young children and how technology is integrated into family life,” she says in an interview with Wired magazine.

“Based on our very small sample, we had the feeling that operationally, children can do this kind of flipping. My guess is that teens would be able to do that more rapidly and intuitively than these young children, but the adults who are not used to multi-tasking,

ON THE RECORD

would not find it any easier.”

This ‘flipping’ is shaping brains to be better prepared to rapidly toggle between tasks, which, in terms of information absorbing, can be short term, instead of allowing the brain to naturally absorb information at its own pace. The implication for businesses over the coming years is that more time will be needed for proper reflection and time spent away from immediate distractions.

Harnessing technology in the correct way can lead to more sustainable learning and better businesses. Heavy multi-taskers are not good at exploiting information, instead they have a tendency to process exploratory information.

Other studies have shown that multi-taskers make more mistakes and are worse at remembering information learned during multi-tasking. Perhaps this suggests that

The ‘connected generation’ and their employers will need guidance as to get the best out of digital technology and media

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humans are not good at dealing with data bombardment.

Humans have a brilliant capacity to adapt to the world in which they live. Before the arrival of the motor car, people did not worry about being hit by motorised traffic when crossing a road. Now this is part and parcel of life along with other daily distractions. As the world changes, so do our needs to pay attention.

“With the right support, digital media can provide new and intriguing possibilities for the development of young children’s communicative skills. This suggests that, used thoughtfully, technology can enhance rather than hinder social interaction,” says Prof Plowman.

More than 80% of social media consists of announcements about oneself, compared to 30-40% of human speech. This fact suggests that young people are more comfortable communicating about themselves through the use of the internet. The ‘connected generation’ and their employers will need guidance as to get the best out of digital technology and media. There has to be a happy medium between online over-indulgence and productive usage in order to get the smartest and most creative young minds to become the backbone of our economic future. n

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ON THE RECORD

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>> Nothing set in stone for Scotland’s destiny The constitutional debate on independence or staying in the UK has a long way to run. As we enter 2014, Scottish businesses still have time to listen to the arguments and make up their minds According to opinion polls, a large number of Scots are still undecided about their voting intentions in the Referendum in September 2014. While around 47% back remaining in the UK, with 29% backing an independent Scotland, it is the 24% who haven’t made up their minds that will determine the outcome.

However, an informal straw poll of business leaders spoken to by BQ Scotland suggests that the ‘Better Together’ campaign is winning the economic argument and that the uncertainties and fiscal gap of full independence is a step too far. What has been interesting is the increased awareness among business people south of the board and their appeals to Scots to stick with the Union and not throw away 300 years of the ‘oldest free-trade zone in the world’.

Nonetheless, 2014 is going to be an exciting and action-packed year, with Homecoming, the Commonwealth Games in Glasgow, the Ryder Cup and the battle of Bannockburn memorial, and this kind of emotional charge might spill over into more Scots deciding to ‘give it a go’.

There will be a plethora of events for business people in Scotland to ask questions about the future, although perhaps the more sensible questions is how will Scotland’s devolved government do more to encourage business.

Worth a look is a series of seminars called The Politician and the Professionals, in February and March, organised by the David Hume Institute in conjunction with the Young Academy of the Royal Society of Edinburgh.

Senior politicians from the five parties represented at the Scottish Parliament will speak for 45-50 minutes – one at each seminar – about the ‘implications of constitutional change.’ Each speaker can choose their slant with Dr Jeremy Peat, director of the David Hume Institute, in the chair.

The series begins on 15 January when Nicola Sturgeon, MSP, and Deputy First Minister speaks, followed on 22nd January by Johann

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Lamont, MSP, leader of the Scottish Labour Party, 30th January by Patrick Harvie, MSP, leader of the Scottish Green Party, 4th February

by Willie Rennie, MSP, leader of the Scottish LibDems, and 13th February, Ruth Davidson MSP, leader of the Scottish Conservative Party.

The events begin at 6pm and non-members pay £25 per seminar.

The Scottish Government was due to launch its 200-page document as BQ went to press, but John Swinney, the finance minister, said that Scotland’s economic activity was ‘outclassing that of the rest of the UK’ and under the new Scotland Act, coming into effect in 2016, the tax take for Scotland would still only be about 15%. He said this was not enough for the country to determine its own economic destiny. He also states that Scotland would set its corporation tax at 18%, 3% lower than the rest of the UK and part of his ‘expansionist agenda’.

One significant issue for business will be over retirement pension provision, especially with Scotland’s ageing population. According to ICAS, the private sector pension schemes operating between an Independent Scotland and the remainder of the UK would be classed as ‘cross-border’ under EU law. Strict new EU solvency laws require cross-border pension schemes to be fully funded at all times and underfunding to be rectified. The UK state pension bill for 2010-2011 totals £82 billion, which is 40% of all social benefits and 13%

of UK expenditure. Scotland would have to identify its share of UK assets and liabilities. UK liabilities as of 31 March 2001, were £2,421bn.

With Scotland having a larger public sector than the rest of the UK, the public sector pension liabilities at 31 March 2012, is £86bn, with a rather large £60bn of unfunded public sector liability that would have to be found from somewhere in Scotland.

In the long run, it appears the only way an Independent Scotland could meet its EU obligations is to get more people into work and paying tax: either that or make more cuts in public services – and another hike in the pension age. This fiscal gap is going to be a major debating point in the coming months.

The ‘Yes’ campaigners have called much of this kind of number-crunching ‘Project Fear’, saying that the ‘No’ campaign is largely a list of ‘why it won’t work’. They argue that an Independent Scotland, without the burden of Trident nuclear submarines, and with a Scottish oil fund, will help unleash Scotland’s creativity and allow the nation to flourish.

Certainly Scotland’s First Minister has been a brilliant ambassador on behalf of Scotland, particularly in building economic links with China. He remains a popular leader in Scotland, whether his charisma and political ability is enough to convince Scottish voters, it will be interesting to see. www.davidhumeinstitute.com

Whether his charisma and political ability is enough to convince Scottish voters, it will be interesting to see

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Scottish

EXPORT awards

2014

Wednesday 28th May 2014 Glasgow Science Centre

To enter The Scottish Export Awards 2014 visit www.bq-magazine.co.uk/export-awards For further information on the event or to book tickets please contact Jackie Malloy on 07968 146605 or email Jackie@blackpearluk.co.uk.

For sponsorship and BQ advertising please contact David Hughes on 07789 397526 or email davidh@room501.co.uk In association with

NEWS

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Independence proposals come under business scrutiny, big Scots buyout in the investment sector, Arran Brewery goes to market for a boost, directors focus on productivity, Scots airports flying high mainly >> Widows won over Aberdeen Asset Management, with managed assets of £200.4bn, has bought Scottish Widows Investment Partnership and SWIP’s related private equity and infrastructure fund management businesses in a deal worth £550 million.

The acquired business includes the Investment Solutions division of SWIP, a separate investment group that is responsible for the design, development and management of investment solutions for Lloyds’ wealth clients.

The deal include a strategic relationship operating across Lloyds’ Wealth, Insurance, Commercial Banking and Retail businesses and is expected to result in a stronger asset management offering for customers.

Aberdeen share price of 420p per share will be satisfied by the issue of 131.8 million new Aberdeen shares to Lloyds, equivalent to about 9.9% stake in the group.

There will also be a performance-related five year earn-out payment of up to £100 million dependent on growth delivered by the relationship with Lloyds in the Investment Solutions business. The transaction is subject to certain regulatory approvals. The business will add around £136bn of assets under management with annualised revenues of approximately £234 million to the group.

The acquisition adds breadth and depth to Aberdeen’s existing product offering and enhances the position as a leading independent global asset manager. It also elevates Aberdeen, formed in 1983 after a management buy-out, to a top five position in the UK retail market, an area of strategic focus.

Martin Gilbert, chief executive of Aberdeen Asset Management said: “This transaction is significant for the long-term prospects of Aberdeen in a number of ways. It strengthens our investment capabilities and adds new distribution channels; the acquisition of SWIP adds scale to our business across a range of asset classes; and it also introduces a strategic relationship with Lloyds Banking Group. We

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>> Michaluk goes along with the crowd Gerald Michaluk, featured in BQ Scotland issue 9, has announced a crowd-funding initiative to boost his Arran Brewery business. He is aiming to raise £4m to upgrade the brewery on Arran, develop two new breweries on the mainland, a brewing school and to open a distillery.

He has adopted the slogan: “Be part of the Craft Brewing Revolution” Arran Brewery has experienced sales growth over the last five years achieving sales of £834,829 in 2012/2013, an increase of 15%. Production was 412,500 litres taking advantage of a 50% brewery duty relief for small breweries producing less than 500,000 litres a year. The brewery wants to increase production substantially. It also wants to open the Forth and Clyde Brewery and purchase the former Rosebank distillery in Falkirk. The offer is to issue 50,000 new B shares in Arran Brewery at £80 per share, raising £4 million.

are confident that this transaction will deliver considerable additional value to our expanded client base and so benefit our shareholders.

I am delighted to welcome Lloyds as a major shareholder in the Aberdeen group and we look forward to working with them to deliver value through this new strategic relationship.”

Aberdeen is a FTSE 100 company operating in over 23 countries across Europe, Asia and the Americas.

Responding to the deal, Owen Kelly, chief

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executive of Scottish Financial Enterprise, said: “The acquisition of SWIP and the formation of a strategic partnership with Lloyds reflects the strength and success of Aberdeen as a leading global asset manager.

It is a ringing endorsement of Scotland and the UK as an international financial centre, with over half of the group’s assets to be managed from Edinburgh and a quarter of Aberdeen’s global workforce based in Scotland.”

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>> Law firm’s high Watermans Solicitors ended 2013 on a high note with an annual turnover of £2.9m exceeding their target by 30%. In 2012, the personal injury claims specialists increased their turnover by more than half the 2011 figure to £2.2m. The Leith firm, which won the Law Firm of the Year award (under 40 fee earners) as well as the Up and Coming Firm of the Year at the Law Awards of Scotland in September, has secured a six-figure lending deal with Clydesdale Bank as part of its expansion.

The firm, now employing 25, was founded in 1999 by Neil Waterman, senior partner, who said: “We’ve made extremely good progress this year in terms of establishing Watermans as a major player in the Scottish legal sector, particularly in the personal injury market. We are extremely grateful to our team for delivering a consistently exceptional level of service to our clients, and also the Clydesdale Bank for having the vision to back our plans to grow the business.”

>> Growing brighter Creating successful directors to grow more productive companies and lead Scotland towards a brighter economic future, was the main theme of IoD Scotland’s annual conference at the Gleneagles Hotel. Over 120 directors from all over Scotland, gathered to hear from some of the country’s most dynamic leaders about the challenges facing Scottish companies.

Jayne-Anne Gadhia, chief executive of the Virgin Money Group kicked-off the morning session by elaborating on the company’s EBO philosophy of making ‘Everyone Better Off’ as a way of distinguishing itself from other banks in the market and ensuring long-term sustainability; while Professor Andrea Nolan, principal and vice-chancellor of Edinburgh Napier University, pledged to do more to nourish entrepreneurship as a career choice.

Looking to next year in the context of the large volumes of tourists coming to Scotland for the Glasgow 2014 Commonwealth Games and Ryder Cup, Sheila Fleet OBE,

argued for a Made in Scotland app to be produced. The founder of Orkney-based Sheila Fleet Jewellery pointed out that such an app would give tourists a snapshot of where local artists were located as well as potentially generating more income for the industry. To encourage more interactivity between delegates, this year for the first time there was an informal cross-table discussion in the Director Development session led by IoD executive director, David Watt. He spoke about the benefits of training to help Scotland’s businesses reach the next level. “Directors face numerous challenges, such as globalisation, IT and recruiting and securing a qualified workforce. We offer a variety of pathways towards a chartered directorship which are designed to address some of these issues, but it may be that we need to look at a more structured offering to meet the changing needs of directors.”

Donna Malone, global HR director of the Howden Group and IoD 2013 Female

NEWS

Director of the Year, and Stephen Glancey of C&C spoke about managing highly diverse global business models while Bill Morris gave an insight into what went on behind the scenes to deliver the hugely successful 2012 Olympic Games. Over dinner, Morris delighted delegates with some ‘uncut’ material such as how they persuaded Her Majesty the Queen to become a Bond girl.

The IoD Scotland Director of the Year Awards take place on Thursday 27 March 2014 at the Crowne Plaza Hotel, Glasgow, marking the 10th anniversary of the awards.

Made in Orkney ‘would be a jewel of a tourist snapshot’

>> Airports booming The number of air passengers using Scotland’s regional airports grew by more than 10% in October. Figures show that HIAL, which operates 11 airports across Scotland, recorded 127,137 passengers then, an increase of 12,124 (+10.5%) on October 2012. Sumburgh added 9,464 passengers in the month, the result of increased oil sector and scheduled traffic, while Inverness recorded an extra 2,968 passengers (+5.4%) following growth on the Amsterdam, Bristol, Birmingham, Gatwick and Manchester routes. Growth was modest at Wick John O’ Groats, with numbers up by 842, while Campbeltown, Benbecula and Islay reported an increase in numbers. They were down at Barra, Stornoway, Tiree and Dundee.

Inglis Lyon, managing director of HIAL said: “We have added more than 60,000 passengers this financial year, much of it energy related but a significant proportion as a result of increased demand for scheduled routes, particularly at Inverness. With the number of visitors to Scotland up in the first half of this year, and a host of activities in 2014 set to place Scotland on the stage as a world class destination, we are confident that we can continue to attract more passengers through our airports.”

Meanwhile, budget airline Flybe is closing six regional bases and cutting 500 jobs. Bases at Aberdeen, Inverness, Isle of Man, Jersey, Guernsey and Newcastle will shut, although flights to the airports will continue. The carrier also indicated there would be cuts at Edinburgh, Glasgow, Belfast, Birmingham, Manchester and Southampton.

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BUSINESS QUARTER | WINTER 13

NEWS

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>> Hotel boss named Chris Quinn-Waugh has been appointed general manager of the Chester Hotel, Aberdeen’s newest luxury hotel, due to open in early 2014. She joins from Edinburgh’s Royal Terrace Hotel and has previously held general manager positions at the Macdonald Inchyra Grange and Houston House hotels.

She is recruiting a core team of about 100 new staff.

>> Trusting in Susan

Back - Stuart Cochrane, Scott Black, Willie Finlayson, Stephen Sheal. Front - Judy Wagner, Bill McCall

>> Executive search firms merge Two of Scotland’s most established executive search firms, FWB and Park Brown International, have merged forming FWB Park Brown. The Edinburgh headquartered search company FWB, which was established by Willie Finlayson, Judy Wagner and Scott Black, has a 20-year track record of working with high-profile clients across a wide range of industries and sectors throughout the UK. Since it was formed 25 years ago, Park Brown International has developed a comprehensive global network in the fast-growing oil and gas sector.

The Aberdeen-based search and leadership consultancy has a sister company in Australia and recently opened a new office in Houston. FWB director Scott Black said the merger will enable FWB Park Brown to break new ground.

“We have enjoyed a close association with Park Brown over many years and although a big step, this merger feels very natural. This is about two high-quality, well-established businesses with a common ethos combining to pool their resources to drive growth and expand their reach.

We both have reputations built on the quality and longevity of our client relations, so by working together we expect to be able to offer our clients an enhanced service offering while also extending our client base.”

Park Brown International’s managing director, Stuart Cochrane, said: “We are well-known for our independent capabilities in delivery and expertise at senior level, as well as for being hugely committed to our clients. The merger will enable us to widen our talent pool and grow the businesses.”

FWB Park Brown will be chaired by Bill McCall, who had considerable private equity and international experience and has worked with FWB in an advisory capacity for many years.

>> Oyster catchers Wave energy company Aquamarine Power has launched a recruitment drive to find eight engineers to help the next phase of developing their Oyster wave energy technology. The Edinburgh firm, which is testing its Oyster 800 full-scale wave machine

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at the European Marine Energy Centre in Orkney, is seeking experienced engineers to join their core engineering, design and project team, together with an operations technician based in Orkney and a research fellow to work at the company’s academic base in Queen’s University Belfast.

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Alliance Trust Savings, a subsidiary of Dundee-based Alliance Trust plc, have appointed Susan Sneddon as their marketing director. She will be responsible for direct channels as well as marketing for the whole business. Susan has over 25 years’ experience in financial services and joins from Royal London where she was brand and communications director for the group.

>> Small Tours, big win Travel company Rabbie’s Small Group Tours has secured another accolade for its expanding trophy cabinet – the 2013 Green Tourism Goldstar Award for Tour Operator of the Year. The Edinburgh-based business was presented with the award at the Green Tourism Conference at the AT Bristol Science Centre. The awards received more than 2,400 entries with 63 nominated for 15 awards.

Green Tourism recognises those who promote sustainability within their business practices to help the environment.

>> Hotel uplifted Hotel owners Graham and Gillian Wood purchased Simpson’s of Aberdeen in spring 2012 and have spent £5m on refurbishment and extension. Aberdeen-based interior designers, Ambiance, are styling the guest rooms, while Graven Images, who undertook work at Hotel Missoni in Edinburgh and Blythswood Square in Glasgow, are designing the public areas. The hotel will feature 59 guest rooms, two suites, a fine dining restaurant seating 100, a lounge bar and a function suite for up to 300 delegates.

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COMPANY PROFILE

The easy path to zero waste for Scottish businesses Recycling and waste management company Biffa is helping businesses across Scotland prepare for the new Zero Waste Regulations. Coming into force in January 2014, the regulations will affect the majority of businesses and will revolutionise the way resources are managed in Scotland.

Recycling and waste management company Biffa is helping businesses across Scotland prepare for the new Zero Waste Regulations. Coming into force in January 2014, the regulations will affect the majority of businesses and will revolutionise the way resources are managed in Scotland.

“Biffa are pleased to be one of the major players in Scotland that can help businesses with the 4Rs – reduce, reuse, recycle and recover energy. We have the breadth and depth of experience to help all businesses, large and small, with the sustainable management of their waste and resources, and could even be saving businesses money” said Biffa’s Lynn Thompson.

From the new year, businesses will need to make sure they have systems in place to recycle metals, plastics, glass, paper and card, and food waste collections will be required where reasonable amounts are produced.

The good news is that Biffa already has wellestablished services in Scotland to help companies meet these new obligations. Whether your company generates just a little office paper or ten tonnes of food waste a month, Biffa has a sustainable and cost-effective solution.

Chivas Brothers, the Scotch whisky and premium gin business of Pernod Ricard, and Biffa customer, has been meeting the requirements of Zero Waste Scotland for some time.

Environment Manager Ronald Daalmans said: “In collaboration with our Biffa account manager, Chivas Brothers has been able to achieve a recycling rate of over 95 per cent at our bottling operations. Biffa’s on-site services and recycling outlets have made it easy to recycle and to do our bit for the environment.” In

In collaboration with our Biffa account manager, Chivas Brothers has been able to achieve a recycling rate of over 95 per cent at our bottling operations.

2012 Chivas Brothers signed up to the Climate 2020 Waste Pledge to comply with the new regulations early.

Chivas Brothers is separating almost all of its waste for recycling, including glass, cardboard,

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polythene, plastics, wood, metal, filter pads, ceramics, paper and organic waste. The organic waste, which is mainly food waste from site canteens, is treated by anaerobic digestion where it generates ultra-low carbon energy and a nutrient-rich fertiliser.

Biffa’s Scottish infrastructure makes it easy for businesses to comply with the new regulations.

Thompson added, “Contrary to popular belief, it’s often cheaper to recycle than to dispose of waste to landfill. Some companies even receive a rebate from Biffa for their rubbish, which is good news for their bottom line and for the environment.”

In particular, Biffa provides support and advice to businesses keen to follow the waste hierarchy. “Our Account Managers specialise in different business sectors. For example, we have worked with some of the UK’s largest food manufacturers and showed them how to eliminate waste at source. By rethinking waste and seeing everything as a resource, the business sector really can make a huge positive impact on the environment.”

Scottish businesses preparing for the change are invited to contact Biffa’s Customer Service Team to arrange a FREE consultation – 0800 023 2172.

You can also find out more about our complete range of services by visiting www.biffa.co.uk

BUSINESS QUARTER | WINTER 13

NEWS

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However, the proportion of high growth companies is the lowest in the UK, at less than one in five, with the rate of change the second slowest after London. The number of enterprises has increased by only 0.4% in the past year in Scotland making it home to 151,115 enterprises.

This Entrepreneurs Index is the first to track activity levels in the entrepreneurial life cycle throughout the UK, including start-ups, growth and share sales. The report reveals that Scotland saw a 23% fall in the number of active, growing companies recording share sales in the past year to 305, which could reflect potential investors being selective and Scotland’s entrepreneurs waiting for more favourable conditions to sell.

>> A guide to improvement

>> Nelson joins angel descent on Europe Business angel Nelson Gray – featured in BQ Scotland issue 2, joined 25 leading academics and researchers in angel investment from Europe’s top institutions developing a co-ordinated approach to providing data and intelligence on the angel market across Europe. The conference in Berlin was organised by Business Angels Europe, which assembles the 12 main angel investment federations of Europe covering 90% of the marketplace.

Philippe Gluntz, president of Business Angels Europe, says: “Up to now, there has been no available cohesive and reliable information on angel investment, or trends and developments among Europe’s angel market.

We are delighted to be organising this important conference to address this issue”.

This conference, hosted by BAND, the federation of angel networks in Germany, included a number of presentations from experts examining what data already exists on the Angel market and the opportunities ahead.

>> Higher and higher Scotland’s high-growth companies – those with an increase in turnover of at least 33% in the past three years, as well as 10% year-on-year growth for a minimum

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of two of these years – have displayed impressive increases to18.2%, according to the Barclays and BGF Entrepreneurs Index reports.

This is a year-on-year change of 10.4%.

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Public sector purchasing must be made easier to allow the smallest Scottish businesses to win work, Holyrood has been told. The Federation of Small Businesses in Scotland has welcomed moves to force public bodies to consider the economic impact of their procurement.

The small business lobby group has highlighted figures which show that, despite accounting for 94% of all Scottish businesses, enterprises with fewer than ten employees in Scotland only receive 4% of public sector recorded spending.

The FSB argue the Scottish Government’s Procurement Reform Bill must be accompanied by guidance to improve public bodies’ buying standards, no matter the size of the contract. Susan Love, the FSB’s policy manager in Scotland, said: “The £9.7bn which the Scottish public sector spends purchasing goods and services could play a pivotal role developing and supporting Scotland’s local economies. The FSB has worked long and hard with the Scottish Government, and others, to develop this legislation, regularly highlighting the dismal proportion of public spending that ends up with the very smallest Scottish businesses.”

NEWS

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>> Oilman wins top business award Hamid Guedroudj has been named Scotland’s Entrepreneur of the Year 2013 at the prestigious Entrepreneurial Exchange awards and dinner in the Hilton hotel in Glasgow. He is the chief executive officer of Edinburgh-based Petroleum Experts, which produces advanced software tools for the oil and gas industry. Before setting up Petroleum Experts, he worked for 13 years in the oil and gas industry as a consultant.

“I am a good Scot. I arrived over here 24 years ago with my wife, three suitcases and three children.”

In thanking the Exchange for the award, he told the audience of over 500 people that it was his staff’s hard work that made it all possible.

Talking about the role of entrepreneurs, he said: “We have something that we share. We are all here to create the wealth that civil society needs to be as good as it can be. It is multiplication of all the enterprise of everyone who is here and that will create the jobs for the public services that we want,” he said.

Winner of the Emerging Entrepreneur of the Year is Nigel Chadwick of Stream Communications, which he set up with fellow director Kevin McDowall. Stream developed software for the emerging machine-to-machine sector which allows devices such as electric car charging points and vending machines to communicate.

Customers include Clear Channel in the US. Ann Budge, who created Newell & Budge, and Roy MacGregor, of Global Energy Gorup, in Inverness, were both inducted into the Exchange’s Hall of Fame.

>> Independence, business makes its points Scotland’s business group have been responding to the White Paper on Independence, Scotland’s Future, launched

by First Minister Alex Salmond, published by the Scottish National Party in November 2013.

Scotland chairman of Institute of Directors,

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Ian McKay said: “What the business leaders we represent at IoD Scotland are looking for from all parties, is a regime that is good for the economy, good for jobs and good for business. While the White Paper maintains there will be no increase in the basic rate of tax, this will inevitably mean rises in other taxes to fund initiatives, like increases in childcare provision, and it is not immediately clear how these services will be funded.”

“We have concerns about things that are already in train regardless of the outcome of the independence referendum. Changes in income tax are due to come in next year under Westminster’s Scotland Act and currently under the Scottish Government’s watch we’ve seen business rates creep up so that they are forecast to increase by an extra £1bn in the year 2015 – 16. These are not things that are good for business.”

“We believe the Scottish economy needs to be stimulated by an increase in public spending through infrastructure projects, not just a recurrent spend on public services. With more Scots becoming self-employed, we need a fiscal regime that encourages entrepreneurs and is also favourable to SMEs. Most importantly, we need a comprehensive road map that shows where the country is going and an economic stability that gives business leaders the confidence to plan 10 years ahead, not just lurch from year to year as many companies have done recently.”

John Cridland, CBI director-general, said: “Next year’s referendum is a matter for the Scottish voters. The outcome will matter hugely to businesses and consumers across the whole of the UK. The CBI believes that the nations of the UK are stronger together and that Scotland’s business and economic interests will be best served by remaining as part of the UK. Our members have been pressing for responses to many key questions

on independence that we have put to the Scottish Government and we will study this White Paper closely to decide how far it answers businesses’ questions.”

Bryan Buchan, chief executive of Scottish Engineering, said: “The first obvious concern to the engineering manufacturing sector is the apparent haste with which the first independent parliament would ditch Trident with the consequent loss of employment. At current levels this would involve at least 1600 jobs at Faslane and Coulport. Add to that the large number of secondary jobs within the supporting supply chain and you will create a massive group of highly skilled jobseekers.

“I would also like to know how the promise of boosting high value jobs through increased manufacturing activity is to be delivered. The manufacturing engineering industry as it exists in Scotland today has demonstrated excellent stewardship to come through a prolonged and deep recession. What is the accelerator that politicians in an independent Scotland think they can activate to improve on this?

“The focus on maximising the opportunities of offshore energy is cited – but as yet this technology has to be proven capable of delivering cost effective energy. For manufacturing to grow and be sustainable we absolutely must have a reliable and affordable source of energy which does not put our indigenous industry at a competitive disadvantage.

“Finally, on a more positive note, it is heartening to see that the document recognises the importance of employer associations such as Scottish Engineering and plans to work with us by building a partnership approach to address labour market challenges.”

Andy Willox, the Federation of Small Businesses’ Scottish policy convener, said: “The Scottish small business owner will look

Wanted, a regime good for jobs, business and the economy

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at this White Paper, alongside other materials, as both a citizen and an entrepreneur. He or she will rationally explore the implications for their business while also considering their own political beliefs. There is no homogenous business vote. Some business owners will, no doubt, feel that today’s document does not address their concerns. Others might now ask of the parties advocating further devolution, stopping short of independence, for similar detail.”

“Half of Scottish private sector employment is generated by small and medium sized businesses. Both sides of this debate will, no doubt, continue to pitch their case to the small enterprise community. Like the rest of the population, each of our members will be seeking clarity on the issues most important to them, which both sides must continue to understand and address.”

NEWS

>> Pharma giant grows Pharma giant GlaxoSmithKline is investing £25 million to expanding its plant at Montrose supporting a new pipeline of medicines.

The investment is being supported by Angus Council, who have given £2.7 million for the development. Scottish Enterprise has also awarded Angus Council £1.5 million to improve access to the GSK site and surrounding area.

This latest investment is in addition to the £100 million GSK announced last year to expand its sites in Montrose and Irvine, Ayrshire, bringing up to 200 jobs across the two sites by the end of 2013.The latest investment will eventually see GSK create 25 new jobs, for process technicians, engineers and chemists, adding to around 300 staff working at the Montrose plant.

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COMPANY PROFILE

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Giving Scottish businesses the knowledge to grow With increasing signs of recovery in the Scottish economy, now is the time for businesses to look at their strategies for continued growth and identify what they need to do to stay competitive.

Positive economic indications are due partly to the resilience of ambitious companies, as well as their vision and foresight to stay focused on opportunities to grow and compete internationally. It is timely, therefore, that Scottish Enterprise is launching a new initiative called Knowledge for Growth.

Designed to build on the experience and expertise already within businesses, Knowledge for Growth provides access to additional intelligence and insights to help company leaders plan. On offer will be a range of tools such as case studies, videos and guides – everything needed to inspire ideas, develop strategies and implement activity.

The aim is to provide assets that will allow businesses to take more informed decisions and in turn make the most of growth opportunities, within Scotland or overseas.

Knowledge for Growth offers intelligence across a range of key topics: STRATEGY, LEADERSHIP AND ORGANISATIONAL DEVELOPMENT Information on the latest leadership techniques, including managing talent, strategic planning and adopting better people management practices.

INNOVATION From creating something new, to making more of existing products, practical information to stay ahead of the competition.

ACCESS TO FINANCE Assistance navigating potential sources of funding, firming up proposals and preparing for negotiations.

INTERNATIONALISATION From planning strategy and building export skills,

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GLOBAL VOICES Global Voices’ innovative on-demand service offered a completely new experience in language interpretation. Faced with challenges around development and growth, the company turned to Scottish Enterprise to help translate their plans into practical action.

Global Voices provides high quality translation and interpretation services to public and private sector organisations. With a global team of professional linguists, each working within their subject matter and in their mother tongue, Global Voices can offer specialised translation and interpretation services to a wide range of industry sectors. The technologically advanced solutions developed by Global Voices allows users to access language support from their desktop.

Having identified a number of key advantages, Global Voices recognised the opportunity to develop an on-demand interpretation service delivered through video/online technology. This solution brings flexibility and short notice benefits to the user by removing the need for pre-booking of services which can be costly if, for example, a patient or customer fails to turn up. In planning the next steps in the company’s future, Global Voices recognised that they needed assistance in overcoming barriers hindering their growth and development.

At the outset of their relationship with Scottish Enterprise, a strategic review identified the immediate requirements necessary to accommodate Global Voices’ plans for rapid business expansion. The review demonstrated that investment in innovation and management development were the key priorities to lead the company into a high growth phase.

With development work required on the on-demand, online video interpretation technology, innovation support needed funding. A Scottish Enterprise Innovation Grant provided the solution to some of the costs of technology development.

RSA funding supported investment in additional staff at Global Voices’ Stirling headquarters. This additional headcount places the company further along the road to meeting its strategic objectives.

An ICT specialist provided advice on how to develop the IT structure of the business so that it aligned with the company’s growth strategy. The Managing Director of Global Voices, Luigi Koechlin, has embarked upon a programme of coaching on leadership, provided through the Scottish Enterprise Leadership for Growth programme.

Scottish Enterprise support made a significant difference to Global Voices growth ambitions. Ultimately, Scottish Enterprise assistance allowed Global Voices to bring a new product to market sooner than would have been possible otherwise.

Find out more about Global Voices at www.globalvoices.co.uk.

A Scottish Enterprise Innovation Grant provided the solution to some of the costs of technology development

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COMPANY PROFILE

GALLOWAY & MACLEOD

Luigi Koechlin, Global Voices

Donald Harvey, Galloway and MacLeod

to finding new markets and setting up outside of Scotland, get assistance for your business whatever the size or sector.

LOW CARBON A range of tools to help drive forward plans to develop and market low carbon products, services or technologies.

Galloway & MacLeod is an animal feed manufacturer and grain merchant based in Stonehouse, South Lanarkshire. Established in 1872 as a family business, the company began the move to employee ownership in December 2010. The Chairman drove this change as a way to manage succession and to provide a legacy to employees and the local community.

As part of becoming employee-owned, three staff members were appointed as directors and the management team was widened to include key managers. Although all the managers were experienced and knowledgeable about their areas of operation and the sector, they had much less experience as leaders of a business.

The need for a strong leadership team was vital for the successful transition to employee ownership and continued growth. However, it became quickly apparent that the company required support to assist the management team to develop into their changed roles and responsibilities as collective owners of the business.

As a result the company refreshed their strategy and business plan and developed an appraisal system which led to key performance indicators (KPIs) for each team member and identification of training needs. The company also used coaching to allow team members to make their own decisions and take on more responsibility within an environment where the level of risk is managed.

Scottish Enterprise assisted the Managing Director, Donald Harvey through leadership coaching. Donald participated in a three day Leadership Learning Journey to London where he met and heard the stories of top business leaders, many of them GlobalScots. A key focus of the journey was how successful leaders can encourage greater employee engagement in a business through their own behaviours and leadership styles.

Donald describes his experience, “It really helped me to appreciate the importance of having a simple vision and successfully communicating it to the team. I realised how this can help people understand what they need to achieve and why it’s important to the business.”

“Also it was really beneficial to gain an insight into different individuals’ approaches to encouraging employees to fully engage and take ownership of their role in a business – this is particularly pertinent to our transition to employee ownership. As a consequence we have developed our own set of corporate values and behaviours which are starting to result in greater accountability and contribution to the business”.

Supported by Scottish Enterprise, the management team is also growing in confidence, leading to other developments such as recruiting externally to bring in fresh ideas and approaches; plus a new holistic approach to sales, Intelligent Agriculture, which matches a customer’s needs to products. A focus on R&D for new product development is also being nurtured. The budding coaching culture, helping staff to think differently, is also paying dividends in terms of staff development and motivation and in freeing up management time for more strategic forward thinking. The company has matured and staff are better prepared for the future, providing a strong foundation for growth.

Find out more about the company at www.galloway-macleod.co.uk.

It really helped me to appreciate the importance of having a simple vision and successfully communicating it to the team

Find out more on what Knowledge for Growth can offer your business at www.scottish-enterprise.com. Here are a couple of examples of companies who are already benefiting from Scottish Enterprise support to achieve their growth ambitions.

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AS I SEE IT

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Why Boston is firing up Scotland’s entrepreneurial zeal BUSINESS QUARTER | WINTER 13

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Lisa Tennant, one of the Saltire Foundation’s latest cohort, explains why the eight-month programme – rubbing shoulders with the likes of the Facebook founder – is such an invigorating scheme for Scottish women in business As an experienced non-executive director, entrepreneur and management consultant, I really wasn’t sure what the Saltire Fellowship would offer me when it was first suggested by a colleague.

Completing the fellowship, I can confidently say that it’s a life-changing experience, turning my perspectives on entrepreneurial leadership inside out and inspiring me in ways I haven’t experienced since I was a wide-eyed teenager travelling overseas for the first time.

The fellowship is an eight-month programme involving four months of business education at Babson College, outside Boston, project work with a US company, followed by three months supporting a high-growth company in Scotland.

Saltire’s aim is simple: to produce world class, globally-minded entrepreneurial leaders for Scotland. I also received a Fulbright Scholarship for the programme and this provided me with additional opportunities in the US, including 10 days in Silicon Valley attending the TED Women Global Conference and networking with the entrepreneurial community.

Boston provides access to an array of networks a neuroscientist would be proud of and an energetic entrepreneurial ecosystem. There are countless free events most nights on any subject you can think of. In a single week I attended TEDx Wall Street, learned how to price components from China, talked coding at a Girl Geek Networking dinner, leveraged data for social change and discussed whether heart or head was most important in choosing a career.

At Babson, we had daily speakers sharing cutting-edge thoughts on innovation. Whether

it was the chief executive officer of Pneuron (a start-up disrupting the data science space), the founders of Unreal Candy (producing sweets without all the usual additives) or homegrown talent, such as Hugh Gill of Touch Bionics and Mark Bamforth of Gallus Biopharmaceuticals, the idea-sharing culture was incredible.

One idea which particularly caught my eye was Aging 2.0 - an innovation accelerator for technology improving the lives of older adults across the globe which I’ve been asked to bring back to Scotland. With a particular interest in increasing diversity on Boards, I was lucky enough to meet Sheryl Sandberg, Chief Operating Officer of Facebook, who shared with me her ideas for getting more women into senior roles.

There’s much to learn from colleagues too: 18 Fellows with backgrounds spanning the public, private and voluntary sectors, living and working together 24/7 makes for interesting challenges and opportunities for collaboration.

It also leads to a strong bond and a lifelong network of Fellows past and present.

Some of the most inspirational leaders have been our teaching staff. Babson College is rated No.1 in the world for entrepreneurship and not without good reason, as most of the professors have real-life entrepreneurial and business experience. Using the experiential learning method - comprising case studies liberally interspersed with stories of their own successes and, perhaps more importantly, their most gutting failures - we were taken through buying a business, mergers and acquisitions, finance, sales and marketing, leadership and innovation.

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AS I SEE IT

High points were our transcendental marketing professor who often started classes with poetry and a business professor who recommended the shameless stealing of ideas which could be applied in other countries or sectors. I’ll be following his lead by replicating an exceptional idea in the senior care market.

On the subject of ‘borrowing’, how can we take the best of the Boston start-up scene and replicate it in Scotland? At 600,000 residents, Boston has the same population as Glasgow, yet the entrepreneurial output could not be more different.

The powerhouse of educational talent within a 20-mile radius of Boston includes 74 universities and colleges such as Harvard, MIT and Babson.

These are supplemented by incubators, accelerators, hacker spaces and Maker Labs galore which nurture talent towards success.

Anchor companies such as Genzyme and HubSpot provide experience and big names like Facebook and EMC2 provide a source of staff.

The embracing of Lean Start-up values - fail fast, fail cheap - is perhaps the most noticeable difference. With the Scottish economy on the up and a record-breaking 7000 new companies formed in 2012 in Glasgow alone, the entrepreneurial opportunities for Scotland in its big year of 2014 must not be missed.

If you want a life-changing experience, recruitment for the 2014 cohort is underway and you can apply at http://learning. saltirefoundation.com/2014-fellowship. Come with an open mind and plenty of energy to immerse yourself. I’m looking forward to my Scottish project, developing a marketing strategy for sustainable homes and starting my own company. I’ll return to my non-executive positions with renewed focus and a toolkit of skills and knowledge I could only have dreamed of. n To learn more about me go to: http://saltirefoundation.com/ FellowshipProgramme/FellowBios/ LisaTennant.aspx and uk.linkedin.com/in/ tennantlisa/

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ENTREPRENEUR

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On the income trail One of Scotland’s most prolific business figures is still working hard to encourage and support business. Nick Kuenssberg talks to BQ Scotland editor Kenny Kemp and reflects on an illustrious career that has taken him around the globe - and then back to Scotland Nick Kuenssberg pulls a copy of the day’s Herald newspaper from his leather satchel.

He grins as he opens it out to reveal a frontpage picture story about his daughter, Laura, the business editor of ITV News, becoming the new face of BBC2’s Newsnight.

Asked how he enjoys her media achievements, he nods. “I’m very proud of all of my children,” he says. “Laura and her sister Joanna, just appointed ambassador to Mozambique and their big brother, David. They are great kids.”

A number of years ago it was Nick Kuenssberg himself who made the front pages after a highprofile falling out at Dawson International.

Today, he is content to allow others to take the limelight.

The word ‘industrialist’ has disappeared from vogue in Scotland. In its place, the ‘entrepreneur’ has become much more feted and fashionable. But Nick Kuenssberg can best be described as a ‘Scottish industrialist with a calling’.

As one of Scotland’s most prominent business figures, his career path has wound its way from a trainee international manager with Coats, the iconic Paisley textile giant, through to a portfolio life as a major plc company director, business adviser, angel investor, mentor and chairman of a host of companies and trade, third sector, public, private and arts organisations, including Glasgow School of Art. His calling is to help businesses and notfor-profit organisations define their strengths and maximise their capabilities – and he is now making his mark as the chairman

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of Social Investment Scotland.

Over six feet tall, with striking grey-blond hair, and a ready grin, Kuenssberg is an unmissable personality. But underneath his bonhomie is a steel-trap brain and pin-sharp memory that has helped Scottish businesses including Iomart, Halls of Broxburn and now Scott & Fyfe, a Tayport textile technology business and mLED, a high-growth photonics spin-out from Strathclyde University.

Nick’s father, the son of an academic German family, arrived in Edinburgh in the 1930s to study medicine. He remained in the city, married a fellow medical student and became a much respected general practitioner and a founder of the Royal College of General Practitioners. Nick Kuenssberg was born in October 1942 and with his German-sounding surname, became well used to handling himself in any playground scraps and later on the rugby field. He flourished at sports including cricket and squash and in his subsequent international career became a triple internationalist. He lists sport among his many interests and still skis regularly.

He learned about the practicalities of business during his 27 years with Coats where he rose to become chairman of three divisions. J&P Coats is stitched into Scotland’s economic history. With its roots in 1750s Paisley, James Coats set up a weaving business which bloomed as a result of the French blockades during the Napoleonic Wars. He opened a thread mill in 1826 and the firm expanded around the world, listing on the London

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Stock Exchange in 1890 and merging with arch rival Clarks, also of Paisley, to form a true industrial giant and arguably the world’s first industrial multi-national enterprise. It was one of Scotland’s most successful and renowned businesses merging with Patons in 1961 to create Coats Patons and subsequently Coats Viyella. Today as Coats plc, the company is part of the Guinness Peat Group and still employs 22,000 people worldwide.

Nick Kuenssberg has sat on the board of ScottishPower and Standard Life at dramatic points in their transitions, one from a public utility as the South of Scotland Electricity Board to private, the other as it internationalised.

He has seen a number of boards with many shades of ability and characters. He remains passionate about the importance of good governance, suggests that it is about people rather than systems and expresses concern at the onerous regulatory expectations now being placed on non-executive directors in major financial institutions, which he says may deter talented individuals from taking up such thankless tasks.

Earlier in 2013, he became chairman of Social Investment Scotland, taking over from veteran journalist Alf Young. He has developed a new board of directors, all unpaid, who he anticipates will take the organisation to a new level of lending to social enterprises and charities. With such a portfolio of business interests, his business approach has been indelibly influenced by his time as a young managing director working overseas and >>

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ENTREPRENEUR

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ENTREPRENEUR then in head office.

“I was unbelievably lucky. I had a wonderful time at Coats, 26 fantastic years, then one that wasn’t so great! It was a terrific company and one where there was enormous trust in people. We had small management teams around the world which were given almost free rein; the downside was if they stayed too long they became ‘local’, but the upside was the tremendous integrity, industry and determination to take things on.” This led to innovative thinking and problem solving with very good team work in local markets. The clear instruction from the Glasgow head office was, ‘Get on with it, you know best. You’ve been appointed to run it so go and run it.’

Coats were world leaders in making cotton and synthetic threads for domestic and industrial use, while Patons had a strong position in hand-knitting yarns. However, as other textile multi-nationals, such as Courtaulds, were consolidating and snapping up complementary businesses, Coats joined the game too by buying Jaeger, Pasolds, West Riding and a number of knitwear companies both to reduce the dependence on thread and to increase UK-derived profits.

In 1968 Nick Kuenssberg was appointed to Peru as a fresh-faced financial director after being a financial trainee in Belgium, Scotland and Germany. For Nick, a graduate in PPE from Oxford University, working overseas gave him the kind of full-blooded, factory-floor economic and labour relations education that was the stuff of Marxist-theory pamphlets.

“We were an integrated manufacturing operation in our factory on the outskirts of Lima. We had a very good business. What was most satisfying was that when I first arrived some people arrived with shoes made from rubber tyres, but later they came in plastic shoes and then in leather. You could see the benefits on this community of our economic activity,” he says.

“We bought cotton yarn and twisted, dyed and finished it. We started a joint venture with a Peruvian company making synthetic zip fasteners and went into hand knittings, buying yarn, dyeing and finishing it. We also bought out our nearest local hand knittings competitor so we ended up spinning. We were initially serving the Peruvian market but a few years

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later we were exporting to Japan, Brazil and other Latin American markets” he recalls.

“At the same time we had the bizarre industrial community legislation which meant that technically the company gave away in line with profits. The more profits we made, the faster we gave it away to the community, up to a maximum of 50%. This also provided board representation. And this industrial community and therefore its board representation was dominated by the trade union,” he says.

Aged 29, when contemporaries were still in junior roles in the UK, he was appointed managing director when he became involved with trade negotiations on behalf of Peru in the Andean Pact talks as well as helping the company cope with untoward union interference. As a fluent Spanish-speaker, he

With over 400 factory workers on site, the Maoists managed to gain (temporary) control of the union. Kuenssberg and his managers were not at all keen on this or their aspirations and determined to fire the key leader who was defying all disciplinary procedures; this sparked a bitter three-week strike in 1974.

Looking back, was this the wrong decision to sack the leader?

“I talked to the owners of other indigenous textile companies and said this was a risk to the whole industry; they were hugely supportive and insisted that we should not give way to the militants. We were an easy target because we were foreign,” he remembers.

“So it was absolutely the right decision. I was commuting weekly between Chile (where I was trying to re-establish Coats management

toured the plant every lunch-time building a rapport with the workers. This paid dividends, helping him steer the company through severe labour unrest to come.

“We were making profits and we were foreignowned, so we were a target for the Chinesetrained Maoist Communists who wanted to win over our staff and then infiltrate the entire textile industry which was heavily unionised.

We had the Moscow-trained communists running the union, with whom we had a good relationship. Then the Maoists arrived - not remotely interested in the company’s success, only in gaining political power.”

after the Allende regime) and Peru. It was a very bad strike and there was no production for three weeks; we had complete stasis. Most of the white collar employees stayed on to work but there was no production,” he says.

The union secretary made a plea for his members who were without sustenance requesting an advance from the industrial community’s dividend. When it was explained that, without making money, there was no profit to generate dividends, realisation dawned. “I explained that if we didn’t produce, we didn’t sell and therefore there were no profits. We could not possibly pay

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a dividend when we were losing money,” he says.

The solution was to get everyone back to work. It was a tense time and the mill engineer, Hugo Galarza, a former union leader himself who lived on site, checked on the safety of his wife Sally and their young family each night that Nick was in Chile.

As a postscript, Nick and his wife Sally returned in 2002 to a more prosperous Peru for his 60th birthday and were tearfully re-united with a delighted Hugo Galarza and other local staff who were still there.

After six years in Peru and false starts to USA, Brazil and Mexico, he went in early 1975 to Italy which had 6,000 employees and 5,000 shareholders on the Milan stock exchange.

“I was very lucky because I was given the job as finance director but was also responsible for all subsidiary companies.

“These were various joint ventures as part of the Italian government’s promotion of industry in the south and included plants in Foggia and Rieti as well as a zip fastener business with factories in Milan and Friuli.

The work ethic of the Milanese was fantastic, as good as anywhere across the Coats group, but down south it was a different story with farming stock working in airconditioned plants.”

“These were people who had come out of the olive groves, wheat fields and vineyards straight into industrial society. In Foggia, we had a 100% polyester spinning mill where we had quotas of workers from each local village straight off the land. It was a big investment, but when we turned our back the workers would open the huge sliding doors to see the fields, causing yarn breakages because the proper atmospheric conditions were disrupted.”

After the second oil shock inflation ballooned, sales slumped, and he was forced to cut the work force, a tough call when persuasive local politicians insisted that more locals should be taken on. The Coats Patons way was, ‘let the local boss sort this out’ and Kuenssberg did just that.

He enjoyed his time in Milan and remains a convinced Italiophile, but returned to Glasgow in 1978 as overseas finance director, under Charles Wallace, but was

ENTREPRENEUR

A union official made a plea for his members who were without sustenance. When it was explained that without making money, there were no dividends, the realisation dawned with responsibility for managing the growing portfolio of Coats non-textile assets - not one, but multiple businesses.

This industrial portfolio was varied and impressive and included Dynacast, a clever diecasting process that originally produced zip sliders but diversified to make complex zinc, aluminium and magnesium diecast components with 28 plants in 18 countries; there was also a plastic bottle blowing business for hair products in Hungerford; Vascutek, a world leader in knitted vascular grafts, still at Inchinnan, a seaweed business called Sorbsan, which used calcium alginate for treating

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wounds and sores, and Needle Industries at Studley, making needles for sewing and surgical purposes and knitting pins, and Rotax, a scalpel business in Sheffield.

“This was just fantastic for me. From this bag, I developed what we called the precision engineering division and parts of it did very well. Dynacast was a phenomenal business of which more anon. Vascutek was amazing too in terms of potential but we couldn’t get past the FDA in USA so we sold it, just as it broke even, to Sulzer for £33 million. Today it’s still a wonderful and highly profitable company.”

He became Latin America director from 1982 and continued his travels around the continent, bringing the local companies together to improve their mutual help and collaboration, this initiative having started with the Chilean rescue activity in 1974. Immediately after the Falklands war Coats was the first UK company to extend a hand of reconciliation to Argentina with a Latin American conference in Buenos Aires, graced by Industry Minister Guido Tello.

In the mid-1980s Coats was bringing home £20 million a year from its South American businesses but the stock market undervalued such overseas profits with the consequence that Coats was increasingly looking for UK profits. As a result of this, marginal businesses were considered ripe for sell off like Vascutek and Dynacast was a candidate, fortunately forestalled. Kuenssberg explained: “When I left in 1991, Dynacast was doing £120m of sales, with £20m profit, and a 45% return on assets.

In April 1999 Coats put it up for auction and sold Dynacast to Cinven for £315m. I bid for it with Hambros backing, but fell out when the price hit £287m.” He also revealed he turned down the offer by the winning bidder to become executive chairman.

“I was a good company man – the corporate workaholic.”

Meantime textile technology was changing, making factories more efficient, requiring fewer people and new threads, such as polyester, were gaining ground. This made life difficult for traditional UK-based manufacturing exacerbated by the European integration process which was challenging for Coats which had plants in all the major European markets.

In December 1985, Nick Kuenssberg was elevated to the board of Coats Patons, >>

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ENTREPRENEUR and three months later it merged to become Coats Viyella after a dalliance with Dawson International. City investors had been confused about the company’s strategy and undervalued their overseas earnings which combined to undermine them and make them an acquisition target.

“We were well-run, much bigger but undervalued by the City. There was this crazy idea that Dawson could run Coats which was complete nonsense.” And then Viyella trumped the Dawson deal to form Coats Viyella plc. In theory this looked an interesting play but as the UK retail sector abandoned UK garment manufacturing it proved a difficult act to pull off. For a year or two the 75,000 strong international group with sales and market capitalisation in excess of £2bn looked as though things might go its way. Kuenssberg was given additional responsibilities for the fabrics and menswear divisions, sold off all of precision engineering bar Dynacast and worked on the Tootal acquisition in early 1991 but he had decided that the move of head office from Glasgow to London and the future of the company did not hold the same attractions as before and left. This was a hard decision after an exciting and demanding career but he had felt increasingly uncomfortable in the Coats Viyella camp.

Coincidentally he then joined Dawson International, the previous Coats bidder, looking after all non-US business, as he wanted to stay in Scotland rather than accept offers in Newcastle and London. There he enjoyed three good years; but following the disastrous demise of the non-branded American business be became managing director spending much of his time in USA and leading a £45m rights issue sponsored by Cazenove. Nonetheless this was not as successful as anticipated and Kuenssberg, along with his chairman Ronald Miller, made the front pages of the Herald and the FT as they were unceremoniously dumped.

However, many senior business figures in Scotland, softened this blow, placing faith in his reputation and abilities. The chairmen of ScottishPower and Standard Life wanted him to stay on, while the headhunter Douglas Kinnaird suggested a portfolio career. Another supporter was Ewan Brown, then working with Sir Angus Grossart at Noble Grossart. It

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Connecting Capital with Communities: Social Investment Scotland: How does Nick Kuenssberg, who took over as chairman in Febraury 2013, plan to change Social Investment Scotland?

“I knew nothing about Social Investment Scotland when I was approached in November last year.

People were aware I was involved in employee ownership at Scott & Fyfe. I talked to recently appointed Alastair Davis, the chief executive and was very impressed. I liked what I heard and we got on well. I thought that my grey hair could be helpful.”

Since then the board has been refreshed with new appointments in the wings.

“We are taking the whole level of activity up a notch. We are moving from the first division and into the premier league next year.”

He is determined to change the face of social investment in Scotland and persuade pension funds, investment managers and indeed individuals that it is a worthwhile asset class that ticks the ethical and corporate social responsibility boxes. Since 2010 SIS made investments of £44 million in 120 projects with a target of £100 million within the next three to five years. More important than the quantum is to help develop the social enterprise sector in Scotland.

“There is a Calvinistic attitude in Scotland that if you are working with charities and volunteers, you are OK. If you are using money that might be paying interest, then that’s bad, because interest means somebody else is making money at the expense of the investee organisation.”

SIS does loan capital to not-for-profit projects, where the money is paid back up to a ten year period. The bad debt rate is below 5%. They are looking at child care and elderly care opportunities, community investment projects, renewable energy and environmental projects and the creation of social investment bonds among other things – a full menu.

“We want to change the face of funding and developing social enterprise in Scotland and we are very ambitious. Our excellent board – who are experienced business people – are committed to this and do it for nothing.”

SIS employs ten people and aims to have fifteen by the end of 2014.

“Our motto is connecting capital with communities; that capital is financial, human, social and intellectual,” he says.

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was the boom time for management buy-outs and buy-ins, and Kuenssberg, at 52, spent 12 months working with Hambros, HSBC and Royal Bank of Scotland looking at suitable investment opportunities. Each time the bid was one to half a million too low. Then Ewan Brown phoned to say there was a job in the food industry. “But I don’t know anything about that industry,” he protested. “That doesn’t matter, you do know about running successful businesses,” replied Brown.

The target was Halls of Broxburn, the pork producer that hit the news this year as it closed. This was 1996 and the Royal Bank of Scotland wanted to put the loss-making firm into receivership. Around 1,300 jobs were at risk. Kuenssberg’s diligence suggested the business was sound but badly run, and he asked RBS for three weeks to prepare a recovery plan. The bank agreed the plan but insisted he jettison the whole board. Yet Kuenssberg could see there was a need for several members of the team while RBS was steadfast that the whole board would have to go. Thanks to Ewan Brown, Kuenssberg went to see Gavin Masterton and Ian Robertson at rivals Bank of Scotland and found a solution over the week-end.

“We built a modern slaughterhouse to deliver to balance production and optimise our assets and satisfy customers such as Marks & Spencer and Tesco. The big stores were moving to seven-day operations and we had to match this with a sensible deal with the warehouse workforce. “ The union resisted the changes so the STUC general-secretary Campbell Christie was called in to change the union representation allowing the negotiation of sensible terms. With a new managing director from Northern Foods, Halls was turned around and sold to Freddie Duncan’s Grampian Country Food Group, who owned it until 2009 when it was sold to Vion, who ended up closing it down in 2012. “So we actually kept 1,300 jobs going from 1996 through to 2013”.

“Ewan was an outstanding board observer and supportive friend during this period,” recalls Kuenssberg.

Throughout, he remained on the board of ScottishPower and Standard Life and began a career as an angel investor with the

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Braveheart syndicate, where he was one of the earlier investors.

In 2000, he became chairman of Iomart, an emerging telecoms company and internet service provider, set up in 1998. He had met the founders, Angus MacSween and Bill Dobbie through ScottishPower connections and its spin-out Scottish Telecom. Fred Shedden, a leading corporate lawyer with McGrigor’s, recommended Kuenssberg as a chairman at Iomart as it progressed to an AIM flotation, a role that continued in roller-coaster fashion until the end of 2008, when Ian Ritchie took over and by which time Iomart was well launched on its successful data centre strategy.

“Iomart are doing phenomenally well now with their cloud data centres across the UK. I’m still a shareholder, which means a great deal to me,” he says.

This gave him an insight into how the Alternative Investment Market could help emerging technology firms and he steered Amino Technologies, based in Cambridge, onto the market in June 2004.

More recently, he has chaired Scott & Fyfe, set up in 1864 and a Tayside jute survivor owned by the Tough family. “I took over from the 75-year-old executive chairman, Hamish Tough, and in 2010 we brought in John Lupton, as chief executive, who has made a huge difference. We are working with the Glasgow School of Art and with some excellent design graduates from Duncan of Jordanstone in Dundee and with good support from Scottish Enterprise.”

Meantime, in December 2012 the firm’s 100 employees became the owners of the company through an employee benefit trust, a move recommended by Kuenssberg, supported

by Co-operative Development Scotland and helped by Euan Hall and the specialist consultants, the Baxi Partnership, another of Kuenssberg’s former business interests. “I think this development is exciting for the company and the employees and will allow them to share in future success. For me, this underlines the values of the company and of the family as they secure their legacy and creates a real opportunity for staff.”

Kuenssberg still packs a great deal into life and while he relished his academic involvement as a visiting professor at Strathclyde in the

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1980s and is now an honorary professor at the Adam Smith Business School of the University of Glasgow, he is an admirer of Jim McDonald, the principal of Strathclyde in his refreshed ambitions to focus his institution on research in science, technology and links with industry. This has produced some scintillating partnerships, including the introduction of the Fraunhofer Institute, Europe’s largest applied research organisation, in Glasgow. This tallies well for another of Kuenssberg’s interests where he is chairman of mLED, a photonics spin-out from the Institute of Photonics at Strathclyde. mLED benefitted from three rounds of private funding from Braveheart, the Scottish Co-investment Fund and the board, raising some £1.2 million and is looking for $5 million in 2014. This is no novice startup: it has a team of seasoned photonic experts including Martin Dawson, director of both the Institute of Photonics and the Fraunhofer, founder Dr Jim Bonar and non executive director Dr Richard Laming both of whom were critical to Kymata, one of Scotland’s leading photonics companies of the late 1990s.

Also investors are members of the Technical Advisory Council, non executive director and Globalscot Don MacLeod, former chairman, president and CEO of National Semiconductor and Seonaidh MacDonald, a big hitter and ex IBM and Babcock Marine manager as newlyappointed CEO. “We should be able to build something very significant here. The technology is exceptional. mLED’s relationships with the University and the Institute and potentially the Fraunhofer are terrific. I would hope that because there are some very good people involved and there are many others skilled in this arena, we can establish a real bridgehead of value here in Scotland” he says.

Nick Kuenssberg has plenty to keep him occupied – including an e-learning digital company called Klik2Learn developed by RSE enterprise fellow Ann Attridge, as well as two pension funds to be chaired and three charitable organisations that he is supporting in various ways. There is no sign of him slowing down, although he is hankering after some writing and a return to the Americas to catch up with some of his far off friends from his long business career. n

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INTERVIEW

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THE MAJORITY WHO MATTER Christine O’Neill is chairman of Brodies, arguably Scotland’s leading law firm. While she steers a large multi-discipline practice with 78 partners, she is also an expert in constitutional law. Kenny Kemp meets her in the midst of her strategic review week Let’s talk about the Scottish Constitutional Question. Ahh, yes! You tap the side of your nose and nod sagely. 18th September 2014 and all that. A defining moment for Scotland.

No doubt. So let’s speak to a Scottish lawyer at the very top of the highest tree in Scotland to unpack some of this stuff.

“As the UK, we are one of a very tiny number of countries that doesn’t have a written constitution containing rights that can be enforced against the legislator,” says Christine O’Neill, the chairman of Brodies and the only solicitor-advocate on the Scottish Government’s list of standing junior counsel.

In O’Neill’s view there should always be a place for legal challenges to improper legislative decisions - and she is a persuasive and eloquent lawyer in full flow on this subject.

Despite the frenetic amount of work, there’s a remarkable sense of calm in Brodies’ Edinburgh office at Clydesdale Bank Plaza, the same office tower as Cairn Energy and another leading Scottish law firm. It is the week of Brodies’ three-year strategic review, when the 78 partners gather for a major internal

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pow-wow to chart the firm’s course from May next year until 2017. Preparations, papers and presentations are being fine-tuned, as only lawyers with forensic precision for meaning can affect. Yet O’Neill, petite and neatly turned out in grey suit jacket and trousers, steps into the Starship Enterprise conference room, and looks remarkably at ease.

Originally from Dumbarton, she studied public law and moral philosophy at Glasgow University, undertook a post-graduate degree in comparative constitutional law at Harvard in Boston and describes herself as a ‘public lawyer.’ She also lectured at Edinburgh University for a momentous year in 1999 into 2000.

“This was seminal for me. It was the year of devolution and the creation of the Scottish Parliament and it was the year of the Human Rights Act. It was a really important year to be immersing yourself in the birth of Scottish public law, as a serious area of legal practice.”

Putting one of Scotland’s foremost constitutional experts to the test, there is a simple question: could we have a written

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constitution in Scotland – and still be a part of the UK? “In a sense, we already have a written constitution because the Scotland Act – the devolution settlement – already provides legal limits on what the parliament and the government can do,” she explains patiently.

Indeed, the late Lord Rodger of Earlsferry described this as mini-constitution for Scotland.

“It has been a unique development for us to be able to challenge legislation in Scotland.

If Scotland was to become independent, there would be no alternative to a written constitution. Not having a written constitution is a bit like smoking in a restaurant; it is socially unacceptable now. We couldn’t not have one,” she says.

How the courts would relate to this and the powers they would have remains for discussion, as is the style and length of the constitution, whether it mirrors an Arbroath Declaration, a Magna Carta or the American constitution that every school pupil can recite, or a much weightier document, also needs to be determined. >>

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“There are lots of different models you can use and constitutional lawyers in Scotland are already debating whether it should be short and sharp and highly general, which gives more room for interpretation by the courts, or a more highly detailed document, giving greater clarity,” she says, remaining firmly on the fence about which direction she prefers.

Will it include human, civil and political rights, or encompass social, economic and environmental rights? You might be wondering why a business magazine is steering into such legalistic territory, but all of this will have an impact on the future, and serious business people should have an informed view.

“There is a suggestion from those who are in favour of independence that in the event of a ‘yes’ vote there would be a constitutionalmaking exercise that would involve more than lawyers. I think that’s a sensible idea,” says O’Neill.

However, for O’Neill, it is imperative that constitutional change enjoys popular consent – and that the majority buys into the settlement.

She advocates the American notion of ‘civics’, which means that ordinary people understand and are informed by the constitution and its often controversial amendments.

“I like the idea of civics in schools, whether we have a written constitution or not. Not just the rules but the context for the rules and rights. It’s about going beyond the superficial,” she says.

From 2000 until the present day there has been a great deal happening in the sphere of public law. With the Scottish Parliament legislating and the mechanisms of the Scottish Government developing cephalopodic tentacles, there was a flurry of policy and therefore public law work. This gradual development has included the Freedom of Information Scotland Act, in force since 1 January 2005, which created the Scottish Information Commissioner and, in addition, the creation of the Scottish Public Service Ombudsman, who handles complaints about councils, the NHS and government agencies.

This has been a bounty for Brodies and O’Neill and her team.

“We acted in the first legal challenge to a decision of the Ombudsman. We were acting for Argyll & Bute Council on a question of free

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This is not a criticism but it will always be a tendency for elected politicians to look to the views of the majority.

personal care for the elderly. This was unique to Scotland,” she says.

In this case a judicial review was taken and Argyll & Bute was successful, but the whole issue of personal care remains a complex issue.

“We then saw the beginnings of the process of challenges to the Acts of Scottish Parliament.

This is unique because in the UK context we don’t generally challenge the Westminster parliament. It’s not possible to do so because of the concept of sovereignty,” she says.

Yet, elsewhere in the world, parliament’s laws can be challenged.

“There have been challenges in the fields of criminal law and mental health. This firm has

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been involved in the commercial side when it is likely to impact on business clients,” she adds.

Indeed, Brodies was involved in challenging legislation concerning pleural plaques, an asbestos-related lung condition which is not itself a disease and usually has no symptoms.

The firm represented the insurance companies writing employers’ liability insurance. It was a challenge to an Act of the Scottish Parliament which came into force in June 2009, which confirmed that pleural plaques cause personal injury and enabled actions to be raised for damages.

“This was very controversial, with strong views aroused by the challengers but pretty significant legal issues at the heart to it which needed to be resolved.”

This went to the Supreme Court in London in June 2011 and the Act was declared valid but in the process the court insisted on re-writing the rules for Scotland on who could bring such challenges.

O’Neill and her team also went to the House of Lords with the first case under FoI, challenging the release of childhood leukaemia statistics on the basis that such figures might identify children who were diagnosed with leukaemia. The outcome was the statistics were not released.

“It is essential for democracy that there are checks and balances. I have no fear of legal challenge. I don’t regard courts as undemocratic, simply because judges are unelected, that’s a fallacy. Democracy is the sum of all of its parts: the judiciary, the executive and the parliamentary legislators.

You need those balancing factors. This is not a criticism but it will always be a tendency for elected politicians to look to the views of the majority. In protecting the rights of minorities, it is very important that they have a legal process that can put a stop to political action,” she says.

O’Neill acknowledges the good luck to be studying her specialism of ‘civics and public law’ at such a fortuitous time. Nevertheless, her arrival at Brodies coincided with the firm’s decision to expand in the field of public law.

“It is about the law which governs what the state can do, which includes any aspect of government. I act for a lot of public authorities but I also act for commercial organisations >>

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INTERVIEW

I like the idea of civics in schools, whether we have a written constitution or not. Not just the rules but the context for the rules and rights. It’s about going beyond the superficial

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or individuals who might be affected by government or parliamentary decisions,” she says.

“Even when I was a pretty junior lawyer, the firm was prepared to invest in that practice.

That’s been immensely important to me.”

If O’Neill was a stick of Edinburgh Rock, she would have Brodies stamped right through her, such is her passion for the firm. While her specialism is public law, she stepped up to represent the whole firm as chairman earlier this year.

“In our view, we are the strongest independent Scottish law firm operating in the jurisdiction, with offices in Edinburgh, Glasgow, Aberdeen and we’re the only Scottish firm with a presence in Brussels.”

She says Brodies’ aim is to be ‘best in breed’, which means being the first choice in Scotland for any sector where clients want quality legal judgement. The firm has over 560 staff with 343 legal staff and announced revenues of £46 million for the year ending April 2013, which was a 7.5% increase on the previous year.

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“We like to be transparent about how things are in the firm: it’s one of the advantages of being a limited liability partnership, in that you have to go to the market every year and say how the firm is doing. We think we are in a pretty strong position and we’re pleased that we’ve managed to maintain our growth throughout a challenging period for the whole market, not just for legal services. However, it is good for Brodies that there is a healthy legal market in Scotland. We need healthy competition in the market in Scotland.”

O’Neill doesn’t want to be drawn into discussion about other law firms’ woes but puts Brodies’ progress down to the firm’s clear strategic planning process.

“We have done this for more than ten years, looking at market conditions and the economy and looking at areas where we think our clients are going to need legal services. We then plan our investment and growth for the next three years around this. We also try and stick to the plan. Of course, there will be bumps and ups and downs, but having a

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plan makes it easier to stick to it.”

There is flexibility but the plan is to keep the firm on a steady course. How has Brodies done so well, when others have disappeared or merged in the last five years?

“One of the things we have is diversity; we’ve never had all of our eggs in the one basket. We offer the full range of legal services and we’ve been careful not to withdraw from certain sectors that might be less fashionable.”

For example, Brodies has retained a very strong private client practice serving some of Scotland’s high net worth individuals and landed families, when other commercial firms have hived off into separate investment entities. It also has a strong commercial property practice and it has enjoyed expansion in Aberdeen.

“We spent a lot of time thinking about how we could get into the Aberdeen market. We took it slowly and carefully. We were not the first Central Belt firm to open in Aberdeen.

But we think the strategy we adopted, of

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bringing in the highest quality people from an Aberdeen base, was fundamental to making that a success.”

The proof is in the pudding with a fast-growing presence of 54 lawyers, including 13 partners, in the city and the oil and gas practice, led by Clare Munro, who held an in-house role with a supermajor before joining Brodies. Greg May, her colleague and fellow partner in the oil and gas team, was also in-house legal counsel with an energy giant.

“Oil and gas clients need lawyers who understand their industry, and we’ve drawn from an impressive talent pool who have that in-house expertise. They also have that commercial approach too,” she says.

“In all areas, we have focused on what the market needs from us. We’ve also been disciplined financially. We don’t have bank debt and we think sound financial management is key. I used to think it was a nice thing we didn’t have an overdraft; now I think it is really very important.”

This financial prudence has been instilled during a prolonged period of leadership by Bill Drummond, the formidable managing partner, who remains head of Brodies’ operational board, alongside finance director David Edwards. Drummond must take much of the credit for Brodies’ long-term stability and strategic success.

“Leadership is really important at all levels of the firm. We are pretty well organised and we have a structure that has been in place for more than a decade, where there is a strategic board,” says O’Neill.

This is chaired by O’Neill, working alongside Drummond with three other partners, elected by the other partners.

“We also expect our partners to lead by example in their practice areas, to be ambassadors for the firm and to engage with wider civic society, not just the legal profession.”

One of O’Neill’s themes is on thought leadership, which is a buzz phrase, but means that the firm is seen to be participating in debates about law reform in Scotland and beyond. It is about discussing issues which impact on clients, contributing to consultation responses to government, giving evidence in parliament on law reforms, and writing learned

papers on legal or academic matters.

“From a client perspective, they have confidence that their lawyers not only understand the law but the context in which they operate. We should have lawyers who have the breadth of knowledge and perspective to contribute to these debates and not just at partner level. We have to have lawyers at every level, speaking to clients, blogging if you like, and being quoted,” she says.

It is not rent-a-quote comment for the sake of it; O’Neill says it has to be the appropriate space for speaking out.

“It is not the role of the legal profession to be trying to influence policy where you have substantive political issues. But if you can give input on the workability of a proposal, the potential unforeseen circumstances or where a legislative proposal fits into the overall scheme of the law, then that is a valued contribution.”

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opportunities with colleagues.”

O’Neill says the first, last and only has to be the best interest of the client. “You can’t devise legal services with a view of maximising your own revenues because the client will see through that.”

In 14 years she cannot remember a situation when she has suggested to a client that litigation is the ‘best option’.

“Litigation may be a necessary option: but litigation is almost never a good thing. Public authority clients may have no option but to defend a piece of legislation or a policy.

Similarly, litigation may be something that commercial clients engage in for a range of different reasons, but I can’t think of it being a ‘good’ option.”

When O’Neill started her legal career at Brodies she was taken under the wing of David Williamson, QC. [‘He was an incredible litigator and a strong influence.’] Even today

It is essential for democracy that there are checks and balances. I have no fear of legal challenge. I don’t regard courts as undemocratic, simply because judges are unelected Brodies, like all of Scotland’s law firms, operates in a highly regulated environment and needs to ensure that it has strong safeguards in place for compliance. “These are the nuts and bolts. We have a risk management committee where we have partners and colleagues whose role is to focus on risk and compliance for the firm. This committee undertakes a huge range of work to ensure compliance and improving information security, because it is enormously important for clients.”

Then there is the ethical heart within the firm, which she says focuses on behaviour.

“This is the culture of professionalism and good governance, which is the responsibility of all the partners. The way our partners are rewarded is not just about fee-earner revenue. It is focused on a range of behavioural qualities including leadership, a collegiate spirit and sharing work and

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when she plucks an old file from the library with his hand-writing, she laughs because she now writes like him.

She also singles out Joyce Cullen, her predecessor as chairman, as one of her influences. [‘Joyce is the whole package; she is an incredibly clever lawyer. She has great judgement. If I was in trouble, she’s my first phone call, That’s my test.’]

“What the lawyer is there to do is provide the client with judgment. This is my mantra to younger lawyers and it was taught to me by people I respect. What the client wants to know is, ‘What would you do – knowing about my circumstances and with the benefit of your legal knowledge?’ That’s not about advice but making a recommendation and supporting them through whatever choice they make. That’s the job in a nutshell.” n

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A Miller’s tale With craft brewing making its mark in Scotland, Karen Peattie travelled to Alva in Clackmannanshire to meet the boss of the trail-blazing Harviestoun Brewery, makers of Schiehallion, Old Engine Oil and the award-winning Bitter & Twisted

WITH the sun shining on the Ochil Hills, the view from Chris Miller’s office in Clackmannanshire is nothing short of stunning and with Scotland’s craft brewing sector very much on an upward curve at the moment, it’s not surprising that the managing director of the fast-growing Harviestoun Brewery is in good spirits.

Preparing for a trip to the east coast of the US where he has been invited to attend the country’s largest international beer show, Miller is upbeat about the prospects for both Harviestoun and the wider craft beer industry.

“In Scotland, there are around 80 craft brewers now but a few years ago there were around 40,” he points out. “Admittedly, some of them are very small but they are there because there is growing consumer demand.

“Larger breweries are struggling because of the recession and a shrinking marketplace which is down to a slump in the on-trade [pubs and bars] but the smaller ones are doing very well,” says Miller. “Consumers

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are still prepared to pay for quality products and something that’s different, something with more character. It’s actually a really exciting and interesting time for craft brewing.”

An influential supporter of craft and artisan brewing is Richard Lochhead MSP, cabinet secretary for Rural Affairs and the Environment who hosted a round-table dinner for brewers earlier this year, attended by Miller. “It’s great that he’s behind us because there is strength in numbers and it makes sense for us as an industry to try to pool resources when it comes to raising awareness of what we do,” he suggests.

But Miller’s vision goes much deeper. “I want to see a ‘Scottish Brewing Association’ with membership open to all brewers in Scotland, including the larger producers,” he continues.

“I’m talking about people who brew their own beer and those who brew for others. I know people will have an emotional view about this but I think it would be a great platform for us to promote our industry.

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“There’s a lot of growth and many companies are expanding, and when you look at all the niche products we produce collectively, quality products that are bringing growth to the marketplace, I think it’s time to get some sort of association up and running to help all of us capitalise.”

Miller believes that people like BrewDog’s James Watt and Petra Wetzel at Glasgow’s WEST Brewery are “doing a great job” in raising awareness of the industry. “All the PR surrounding them is good for everyone but let’s not forget the early foresight shown by trailblazers like Stephen Crawley at Caledonian who has championed good beer tirelessly over the last couple of decades and had the passion and vision to change consumer perception of beer.”

While the tiny brewery founded by beer enthusiast Brooker in a converted barn in Dollar is now celebrating its 30th anniversary, Harviestoun’s elevation to its current high-profile status picked up serious pace >>

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when it was acquired by Caledonian Brewery in 2006. Miller, who honed his experience of the industry over many years with Bass, was working on a project for Caley managing director Crawley at the time when he got the chance to be part of a management team of Harviestoun.

Harviestoun, one of Scotland’s oldest “microbreweries” boasting a £3 million turnover, traded as a subsidiary of Caley until the Edinburgh beer maker was sold to the Dutch brewing giant, Heineken, in April 2008.

Three Caley directors and Miller then bought Harviestoun. Interestingly, Crawley has recently announced that he will step down from Caley at the end of the year to pursue new business interests although he remains a director and investor in Harviestoun.

Harviestoun, which relocated from Dollar to its current site in Alva in 2004 two years before being sold to Caley, had already been shaking up the market with creations such as Schiehallion Craft Lager, Old Engine Oil Black Ale and Bitter & Twisted Golden Ale, which won the coveted Supreme Champion Beer of Britain at the Great British Beer Festival in 2003. Head brewer Stuart Cail has been with Harviestoun since 1995 and has been instrumental in Harviestoun brands winning many more awards – to numerous to mention – since then.

“Stuart’s an incredible asset to Harviestoun,” says Miller. “He’s vastly experienced and really understands what the consumer wants from a beer. We’re very privileged to have him. In fact, we’ve got a really solid, local workforce – noone has ever left us! You need to have passion in this business and we’ve got it in abundance here at Harviestoun.”

That passion has seen Harviestoun move into international markets as well as develop its business south of the Border. The decision to relocate to bigger premises and invest in equipment had also created spare capacity, inspiring Miller to explore numerous opportunities and seek advice from Scottish Development International (SDI) and Scottish Enterprise (SE). He has also developed a good relationship with industry body Scotland Food & Drink.

“Early on I saw opportunities in export markets,” says Miller. “Export now accounts

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Consumers are prepared to pay for quality products and something that’s different, something with more character. It’s actually a really exciting and interesting time for craft brewing for more than 25% of our business. The US is our largest and fastest-growing overseas market but Canada is also important as is Scandinavia – specifically Finland and Sweden – and Australia. Brazil is growing and we’ve also just broken into China and are looking at others, including Russia and South Africa.

“Much of what we’re doing overseas is reactive but we know that we will have to look at bringing in a dedicated export director in the future,” he continues.

Using independent distributors, Harviestoun has a very specific range of products for its export markets. This includes the Ola Dubh range, produced in collaboration with the Highland Park distillery and aged in casks formerly used to mature Highland Park 30-year old single malt whisky. A limited edition to celebrate the brewery’s 30th anniversary, its comes on the back of the permanent Ola Dubh range of 12, 16, 18.

“We have a 10-year brand licence with Edrington, the owners of Highland Park,” explains Miller. “That gives us exclusive rights to barrels. We’ve also done a deal with J&G Grant so we can create a similar product based around the Glenfarclas single malt brand and

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will launch a new product next March.

“All of these products are really appealing to the consumer because of their provenance and the fact they are hand-crafted beers and labelled by hand,” he goes on. “They’re popular with the collectors who want artisan products and we sell a lot via our website – there’s a lot we can do and we can have fun with it, too.”

Harviestoun, which has received a three-year RSA (regional selective assistance) funding package linked to investment in both capital and human resources, continues to engage heavily with both SDI and SE. “We’ve had tremendous support from both SDI and SE. We’ve already hit our recruitment target as part of the RSA funding and through SDI were able to undertake an insight visit to the US, taking in the Great American Beer Festival in Colorado,” says Miller.

Miller has also been shrewd enough to understand that a consumer-led business can engage with key audiences through social media and received advice from SDI before the firm built a new website and created its digital strategy. “It’s a fun business and Harviestoun has always had a reputation for not taking >>

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ENTREPRENEUR itself too seriously,” says Miller. “Our website reflects our personality and gives all members of staff – 18 now – the chance to engage with the people who buy and enjoy our beers.”

The website provides a description of each product, highlighting its smell, taste, format, ABV (alcoholic strength), sweetness, bitterness and colour. Food tasting recommendations are also available for some beers and there are consumer comments. On Twitter, Harviestoun has almost 4000 followers and there are over 5000 “likes” on Facebook.

All of this is helping spread the word in home markets, suggests Miller. Harviestoun, while still relatively small, has a number of routes to market – pubs, supermarkets and independent retailers. “If you’re going to go down the social media route you need to have a really good website before you get started,” he points out. “We’ve put a lot of time and effort into ours and invested heavily, and we think that investment is paying off.”

Miller had early experience of trading online when he got involved with a dotcom business just before the millennium. “Wholesalers, particularly, were looking at selling online and a trade customer of Bass wanted to do it but didn’t know where to start,” he explains.

“Lastorders.com was the original online drinks company and went on to become a £2.5 million-turnover company.

“I had a rollercoaster couple of years then things got tough in 2001 when the dotcom bubble burst, really before it had begun,” he goes on. “Our funding was pulled. But the legacy goes on because the company is still trading.”

For Chris Miller, his aspirations to grow Harviestoun Brewery have barely scratched the surface. The brewery occupies at 22,000 sq ft within two acres of ground with an option on a further acreage so extending the facilities at some point in the future would not be an issue. Production is sitting at 14,500 barrels per annum. “We’ve already trebled the business moving into international markets and by building our core home markets – both here in Scotland but specifically the key London and south-east market,” he says.

“We’re doing well but there’s a long way to go,” says Miller. “It’s a journey I’m really looking forward to.” n

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If you’re going to go down the social media route you need to have a really good website before starting.

We’ve put a lot of time and effort into ours and invested heavily

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ENTREPRENEUR

Scotland’s best selling bottled ales 2013 1. McEwan’s Export Ale: Once owned by Scottish & Newcastle and one of their main brands. But after S&N was sold to Heineken, this best-selling and popular Scottish ale was sold to Wells &Young, who make the beer in Bedford.

2. John Smith’s Extra Smooth: Heineken UK sold McEwan’s so it could focus its attention on John Smith’s as the UK’s number one ale. John Smith’s is one of Heineken’s key brands along with Kronenbourg 1664, Strongbow, Bulmers and Heineken lager.

3. Tennent’s Special 70/-: A relative to Scotland’s iconic Tennent’s Lager, it is made in Glasgow at Wellpark brewery, which is now owned by Irish cidermakers, C&C. 4. Belhaven Best Draught Ale: Still made in Dunbar while Belhaven is part of the Greene King brewing group, based in Bury St Edmunds.

5. Caledonian Deuchars IPA: Inspector Rebus’s favourite ale is still made at the Caledonian Brewing Company in Slateford.

6. Newcastle Brown Ale: Owned by Heineken but no longer made in Newcastle.

7. McEwan’s No1 Champion Ale: Another of the Wells & Young stable.

8. Old Speckled Hen: One of Greene King’s successful imports to Scotland.

9. Boddingtons Draught Bitter: Once the cream of Manchester but now made in Samlesbury in Lancashire, and owned by beer giant AnheuserBusch Inbev.

10. Arran Blonde: Made on the Isle of Arran but company has plans for a brewery near Falkirk.

11. Hobgoblin: The UK’s largest organic beer made in Wychwood, Oxfordshire, which is in the Witney constituency of Prime Minister David Cameron.

Cameron gave President Obama some beers on a state visit.

12. Innis & Gunn Original: Now doing well in the export market and made in Edinburgh to order by Dougal Sharp and his team.

13. Bitter & Twisted: Harvieston’s best known beer made in Alva.

14. Spitfire Ale: Made in Faversham in Kent by the family-owned beer company, Shepherd Neame.

15. Caffrey’s: An Irish ale from Dublin, now owned

by Coors, one of the global brewing giants.

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INTERVIEW

WINTER 13

On the waterfront After Sunshine On Leith and Filth, Scotland’s film industry is enjoying a mini-boom. Nick Terry travels to the coastal village of Gourdon to meet BAFTA winning writer and film-maker Paul Wright, an emerging talent who explains how the reality of film-making involved tight budgets

The waves lap against the harbour wall as a light drizzle wets the head of Paul Wright.

This Scottish film-maker is standing on the dockside in the coastal fishing village of Gourdon, a close-knit community half way between Montrose and Stonehaven, and the location of his BAFTA-award winning feature film. On this blustery October Saturday afternoon, with a flotilla of small pleasure boats and day-fishing vessels safely tied up and secured for the weekend, there is real buzz in this sleepy Aberdeenshire backwater, famed for its fish and chip shop.

Paul Wright and his team have brought their film premiere of For Those In Peril to the unlikely setting of the Gourdon Mission Hall, where an enthusiastic group of locals, many

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who appeared as extras, have just watched his debut future film. Already it is critically acclaimed and has garnered two Scottish BAFTAs: one for Wright’s writing and another for the film.

The making of this film is a microcosm of Scotland’s film-making and case study of creative Scots trying to make a major breakthrough. While big budget blockbusters dominate the multiplex cine houses across the UK, it is refreshing to see that high quality story-telling like this can still be made on a shoestring. Scotland’s industry is enjoying a period of success with the sunny musical Sunshine on Leith, with the Proclaimers’ music, and Filth, a dark adaptation of Irvine Welsh’s novel, doing decent business at the

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box office. Paul Wright is under no illusion and appreciates he is on the bottom rungs of this precarious career ladder.

“It’s great to be back in Gourdon a year after making the film and seeing so many familiar faces. I’m more nervous than I was in Cannes Film Festival! This coastline is a part of the Scotland I didn’t know and is just so beautiful.

For me, as a Scot, it was essential to shoot my first feature on location in Scotland,” he says.

Wright felt it was a deft touch to bring the premiere back to the village after the local community was so warm and >>

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INTERVIEW

WINTER 13

supportive. “Everyone was so welcoming and even the local knowledge helped out with the crew. There are real locals in the film. It’s authentic, which was important for me. I hope it is a positive thing for the community.”

He drew upon his own upbringing as his inspiration.

“I was brought up in the East Neuk of Fife with its fishing villages. Up here, there is a similar feel but it has a rather unspoilt nature, whereas the East Neuk has many more tourists and day-trippers. That’s nice in one way but not ideal for the film because we wanted a more working village harbour.”

For Wright, Gourdon was an ideal location because everything was close together for the crew, filming over 250 scenes in a tight period.

This was simply because they did not have the budget to spend on multiple locations.

“The financiers had seen my short films and they liked my short films. It was actually Warp, the production company, who liked my work. It was a lot easier than many feature films getting the finance together because Warp had a scheme called Warp X, which has stopped now. But it had a certain amount of money for one more project, and it clicked together at the right time with Creative Scotland, Film4, Screen Yorkshire. I think I’ve had it a lot easier than the norm,” he admits.

Creative Scotland, with a budget of £97.4 million to cover all of the art forms in Scotland, became involved when Wright contacted them to explain the Aberdeenshire content. “They were one of the people we knew it would be a good idea to go to. They were aware of me as a film-maker – and they have been very supportive,” he says.

For Those In Peril, the story of a young man who is the sole survivor of a fishing accident in which five others lose their lives, depicts the despair and gloom that is often the reality in today’s Scotland. “For this character, who goes on a strange journey, the sea was a metaphor for mystery and we don’t know everything yet,” he says.

While Paul Wright’s budget is small, his ambition, like many others in Scotland, is big.

He says in many cases Scotland is punching above its weight when it comes to the film industry. While the absence in Scotland of a full-scale sound stage and associated >>

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Scotland’s Best Film Locations 1949 - Whisky Galore - adaptation of Compton MacKenzie’s novel, filmed on the Isle of Barra.

1974 - The Wicker Man - the cult movie was filmed in the Dumfries & Galloway towns of Gatehouse of Fleet, Newton Stewart, Creetown and Kirkcudbright.

1981 - Gregory’s Girl - Bill Forsyth’s coming-of-age romantic comedy used the exterior of Abronhill High School in Cumbernauld.

1981 - Chariots of Fire - the West Sands beach in St Andrews was used for the iconic scenes in this Oscar winning film. Goldenacre rugby ground in Edinburgh used for the Paris Olympic scenes.

1983 - Local Hero - filmed across Scotland including in Pennan, Aberdeenshire, and on Camusdarach beach, Morar.

1995 - Braveheart - the sweeping landscape in and around Glen Nevis and Loch Leven provided the backdrop for Mel Gibson’s Oscar winner. Yet it was filmed mainly in Ireland using the Irish defence forces as extras.

1996 - Trainspotting - launched the international career of Ewan McGregor and was filmed in Edinburgh (Princes Street and Calton Road), Glasgow and Rannoch Moor.

2002 - Harry Potter and the Chamber of Secrets was the first of the Harry Potter movies to feature Glenfinnan Viaduct in the Highlands.

2006 - The Da Vinci Code - the beautiful Rosslyn Chapel in Roslin, Midlothian, played an important role in Dan Brown’s award-winning novel and featured in the film adaptation, starring Tom Hanks.

2011 - Captain America: The First Avenger - parts of the opening scenes in Norway were actually filmed in the picturesque Royal Burgh of Culross in Fife.

2011 - The Eagle - Loch Lomond, Wester Ross and Stirling all feature in the historical epic directed

by Glasgow-born Kevin MacDonald.

2011 - One Day - the film, based on the novel by David Nicholls, featured many iconic shots of Edinburgh, where the two main characters went to university.

2012 - Prometheus - Ridley Scott’s return to sci-fi used the misty Cuillins on Skye as one of the filming locations for this blockbuster.

2012 - The Dark Knight Rises - villain Bane’s dramatic escape from one aircraft to another was filmed above the Cairngorms.

2012 - Skyfall - Scenes from the James Bond film, featuring Daniel Craig as 007, were shot in and around Glencoe, in the shadow of Buachaille Etive Mor. 2013 - Under the Skin - adaptation of Michel Faber’s book starring Scarlett Johannson filmed around Glencoe, the harbour and beach at Auchmithie, near Arbroath.

2013 - World War Z - Brad Pitt brought Glasgow’s George Square to a standstill in August 2011 as the city was transformed into the streets of Philadelphia for his zombie-themed movie.

2013 - Sunshine on Leith - set in Edinburgh, the musical, with songs by The Proclaimers, follows two soldiers who struggle to adjust to civilian life when they return from Afghanistan.

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Father and son expand century-old construction business.

One of Ayrshire’s oldest family-run businesses is preparing to expand, thanks to funding support from Bank of Scotland.

William Murchland & Co. Ltd. has been operating in the region for more than 100 years. In 2013, following a takeover by father and son Angus and Greg McTaggart, the company announced plans for future growth.

The construction firm, which is headquartered in Kilmarnock, employs almost 40 people across central Scotland and has several divisions, including house and office building, heating, engineering and plumbing.

Funded by a Bank of Scotland term loan of £250,000 and an overdraft facility of £100,000, the company is preparing to develop and expand its roofing business with long term plans for new bespoke premises for the division.

Greg said: “My father and I knew and respected the firm and given our strong background in construction, we thought it was a good fit and a great established business to develop. Our emphasis is on developing and really growing the roofing business into a regional leader while we continue to

invest in the successful construction and plumbing divisions.

“The funding provided by Bank of Scotland is playing an instrumental role in our expansion of the business, and the relationship team’s knowledge of the sector in which we operate is also a huge help to us day-to-day.”

Evelyn McNair, Relationship Director at Bank of Scotland, said: “Greg and Angus are a great example of how strong family business partnerships can have a significant impact on the local economy.

“At Bank of Scotland we have been able to help the pair develop a robust business and financing plan, meaning this Ayrshire company has a positive future and can continue to grow.”

For further information on how lending from Bank of Scotland could support your business growth plans, please visit us at lendingforscotland.com

(L-R) Greg McTaggart and Steven Young (William Murchland & Co.) with Evelyn McNair (Bank of Scotland)

Customer:

William Murchland & Co. Ltd.

Location: Ayrshire

Our service:

Funding for business expansion

“At Bank of Scotland we have been able to help the pair develop a robust business and financing plan, meaning this Ayrshire company has a positive future and can continue to grow.”

Evelyn McNair, Relationship Director, Bank of Scotland

lendingforscotland.com COMMERCIAL BANKING

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INTERVIEW

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It’s an interesting time for Scotland as a film-making country. It’s about keeping a momentum and creating an industry that is sustainable facilities, such as Pinewood at Shepperton, might limit the ambition and creative possibilities of what Scottish-based filmmakers can achieve, there is now a thriving hub for film and television in Glasgow, clustered around the BBC Scotland and Scottish Television head offices, and spreading into places such FilmCity Glasgow, the former Govan Town Hall, where at least 16 BAFTA Scotland nominations, over 50% of the total, are based. More than 80 production companies and 300 facilities companies are based in Scotland and over the last decade an average of 22 feature films have been shot in whole or in part per year in Scotland The filming of the Bond blockbuster Skyfall in the North of Scotland and Harry Potter proves that there is the scenery and the talent to make the biggest films a success. Scotland attracts £25 million of location spend each year from production companies shooting on location all over the country. Although many successful UK film franchises, including Harry Potter, James Bond and Sherlock Holmes, have been filmed in the UK or feature British actors, the most successful UK produced film remains Slum Dog Millionaire, directed by film-maker Danny Boyle, which grossed over £100m in the United States, and £234 million worldwide, putting it into the top 150 of most successful films of all time. Of course, Boyle cut his teeth on the Scottish film noir Shallow Grave, in 1994, which featured a young Ewan McGregor, and then Trainspotting. By comparison, Oscar-winning Braveheart, with Mel Gibson, released in 1995, grossed around £150 million at the box office.

For emerging film-makers, the landscape is hard. The glossy marketing millions are another world away. Public funding, including money from the National Lottery, has eased the situation but film agencies are blighted by

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an inability to get national cinema distribution.

In the UK, more than 50% of feature films get little or no theatre distribution. Funding for films in Scotland tends to come from organisations such as Creative Scotland, which offers Scottish-based talent whether involved in film or TV, finance for the development and production of a project.

For the year 2013/2014, the television and film funding programme has been allocated £4m, a very small sum which means only a handful of projects can get off the ground.

However, Creative Scotland is able to assist productions with location scouting, and working closely with local authorities and government to oil the wheels and help ensure trouble-free shooting.

Paul Wright took advantage of Creative Scotland’s resources when filming For Those in Peril. Warp Films, an independent UK film production company, is most famous for Shane Meadows’ film This Is England. Warp X, set up in 2005 by Mark Herbert and Robin Gutch, was running its low-budget film initiative supported by the UK Film Council and Film4, and For Those in Peril was its tenth and final production. The purpose was to help young directors, such as Wright, step up to make their first feature.

“I was quite fortunate that my short films appealed to the financiers and fitted in with their style and approach. Their funding scheme was innovative,” he says.

When choosing Gourdon in Aberdeenshire as the location for the film, Wright was supported by the local council, who were keen to help.

For distribution and marketing, Soda Pictures took the film from the festival circuit, where it was shown at Cannes, into the UK’s independent cinemas through promotion in the New British Cinema

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Quarterly which is affiliated to them.

“The independent cinemas are scattered around Britain so NBCQ helps get the film out.

We’re doing a bit of touring with the film and meeting some of the audiences. Because we don’t have the budget for much marketing, it is a real grassroots thing and we are relying on word of mouth. We don’t have the money for having it on billboards. The critical response has been a big help to this film.”

For Wright, going to Cannes certainly raised the profile, but winning the Scottish BAFTAs in November will certainly give this new Scottish film an audience way beyond the shore of Aberdeenshire.

“It’s an interesting time for Scotland as a film-making country. It’s about keeping a momentum and creating an industry that is sustainable. Scotland’s always been known for having some of the best crews in the world – and the most talented film-makers and punching above their weight.” n

BQ’s Top 20 All-Time Best Scottish Films 1 Braveheart (1995: director Mel Gibson) 2 Trainspotting (1996: Danny Boyle) 3 Whisky Galore! (1949: Alexander Mackendrick) 4 The 39 Steps (1935: Alfred Hitchcock) 5 Local Hero (1983: Bill Forsyth) 6 The Wicker Man (1974: Robin Hardy) 7 Gregory’s Girl (1981: Bill Forsyth) 8 The Bill Douglas Trilogy (1972-78) 9 Highlander (1986: Russell Mulcahy) 10 Brigadoon (1954: Vincente Minnelli) 11 Shallow Grave (1995: Danny Boyle) 12 The Brothers (1947: David MacDonald) 13 Tunes of Glory (1960: Ronald Neame) 14 Rob Roy (1995: Michael Caton-Jones) 15 The Prime of Miss Jean Brodie (1969: Ronald Neame) 16 Breaking the Waves (1996: Lars von Trier) 17 Culloden (1964: Peter Watkins) 18 Small Faces (1995: Gillies MacKinnon) 19 Mrs Brown (1997: John Madden) 20 Orphans (1998: Peter Mullan)

WINTER 13

COMPANY PROFILE

Crossing new frontiers could all be in a day’s work Internationalisation is a pretty big word. Many Scottish businesses think it’s too big to play a part in their business. However, they couldn’t be more wrong.

There is a tendency, and not just in Scotland, for SMEs to focus solely on their domestic market. For ‘domestic’ you would typically read ‘all of the UK’, but in practice, it is often the case that businesses are only focusing on the market on their doorstep – or within a hundred miles or so.

Just imagine what they could do if they ventured a bit further.

It is important for all businesses to consider how international markets could affect them. Could venturing farther afield yield new customers, new partners, or new service/product lines?

Even Scotland’s public sector is taking on a more global outlook. Scottish Water International is exporting its experience to Quatar, Poland and Canada. The Scottish Qualifications Authority is shipping experience and qualifications to China. Both these organisations have had the vision to look beyond their boundaries.

And, they had to become commercial to do it – that means existing businesses are already one step ahead. They don’t need to go through a learning curve to become commercial.

Ask any ‘internationalist’ and they’ll tell you that the alluring markets are the BRIC countries – Brazil, Russia, India and China (and to a certain extent, South Africa), all of which are going through significant economic transformation.

Indeed, they are certainly attractive, rapidly growing markets, but there are others. Many Scottish companies are successfully operating in one way or another in Europe, or in the US and Canada. These markets have a long tradition of dealing with UK businesses, so as a first step,

they may be more accessible and feel slightly insurmountable, and have clearly not been a less challenging. blocker for other organisations. Fortune favours Some businesses take on an international the brave, so the saying goes. dimension simply by following their A bigger risk than tackling new customers. Has a customer frontiers is making sure the home got international interests? front is well looked after Could you extend your in the process. Going contract by offering your international is hard work, services or products and an owner manager to other markets in must be prepared to which they already put in a lot of hours to operate? Once you’ve make it a success. It started working with may be the ideal time to your existing customer reconsider the spread of in another country it responsibility within becomes familiar territory the core business and reand you have established purpose some members of a base. staff to take on some of the It’s then a much smaller leap crucial tasks.

Campbell McLundie, partner to take on other new business Scottish businesses have clearly in that market. demonstrated their capabilities, It can be daunting to know where to start, and we have a long history of heading across the which is where asking for help comes in. seas to make our fortunes. In addition, we already Organisations like Scottish Development speak the international language of business, so International and the Chambers of Commerce can we are another step ahead already. help to research markets and provide pointers.

Sadly, those businesses that are disregarding Professional advisers can equip you with the tools international business as ‘not for them’ and market specific advice you need as well as are missing out on an exciting and lucrative access to global networks. But the motivation period in the development of their business. has to come from within.

There are a number of things to consider – and this may be the root of the issue. Different employment laws, ownership regulations, tax regimes and bribery legislation can pose challenges. However, these aren’t

Scottish businesses have clearly demonstrated their capabilities, and we have a long history of heading across the seas to make our fortune.

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Campbell McLundie is a partner at ScottMoncrieff, accountants and business advisers.

Campbell.mclundie@scott-moncrieff.com

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COMMERCIAL PROPERTY

WINTER 13

Agency merger a strategic move, Robert Adam’s well in favour, airline secures a new headquarters, Aberdeen gets new brand hotel, design firm focuses on office and retail >> GVA breaks through GVA has merged with Scottish agency firm James Barr, in a deal which sees GVA break into Scotland’s top three property advisories.

The firm will trade as GVA James Barr.

The ‘strategic acquisition’ creates Scotland’s third largest commercial property advisory by turnover. This partnership has significantly strengthened GVA’s presence in Glasgow in particular.

Rob Bould, chief executive of GVA, said, “We’re delighted to acquire such a prestigious business in James Barr. This will be a truly transformational partnership for both companies. James Barr has long been at the forefront of Scotland’s property scene and maintains deep rooted bonds with the Scottish corporate, private and public sectors. At this stage in the economic cycle, this is a first class acquisition of what is undoubtedly one of Scotland’s leading surveyors, which builds

on the excellent client reach achieved by our teams in Edinburgh and Glasgow.

“GVA has entered a period of growth allowed largely by the restructuring of the business last year, an event which leaves us just 12 months away from becoming a debt-free business as well as increasing our profits substantially, coupled with the strongest trading performances this company has seen since 2007. These events have turned GVA into a far safer and stronger proposition. As such this business is confident, and that’s why we’ve not only acquired James Barr, but we’re also securing a number of high level appointments to grow our existing teams and offices throughout the UK.” Eric Forgie, chief executive of James Barr, said: “Having completed a strategic review of our business, it was clear we needed to upscale our operations to meet the increasing demand for our services.”

>> Elaine has designs Keppie Design has appointed Elaine Macleod as divisional director.

Elaine has joined to bolster Keppie’s Commercial team and will be specifically focusing on the office and retail market where the firm has secured several highprofile wins in recent months.

Some of the projects the team are currently working on include St Vincent Plaza in Glasgow, a 170,000sq ft Grade A city centre office development, Aberdeen International Business Park Phase 1, which comprises a 400,000sq ft building, Stoneywood Office Park, also in Aberdeen and Exchange Quay in Salford, which entails the comprehensive reworking of public realm and 500,000sq ft of office accommodation.

>> Another taker at Charlotte Square The investment management company Ruffer has agreed a lease for offices in the newlyrefurbished Georgian townhouse at 31 Charlotte Square, Edinburgh, part of The Charlotte Square Collection. Ruffer is the second business to take up space within the Grade A office accommodation within the redevelopment along the South Side of Edinburgh’s famous Robert Adam-designed Square, which has seen six townhouses reconfigured to form four new properties that blend period architecture and features with the requirements of modern businesses.

Moving in alongside Cornelian Asset Managers who have taken up residence in No 30 and SCOBAN, the new private bank at No 9 (along the north side), Ruffer is another important occupier as The Charlotte Square Collection.

Nick Ball of Corran Properties, which acts as developer and asset manager for The Charlotte Square Collection, said: “We are delighted to welcome Ruffer to The Charlotte Square Collection. The Georgian buildings provide a grandeur and prestige that is important for high-end bespoke financial services companies such as Ruffer as well as a modern, dynamic, secure and well-connected home. One of the most exciting consequences of the redevelopment of the South Side of Charlotte Square is that we are changing perceptions about townhouses as modern office space. With the reconstruction now complete, we have proved that these historic buildings can have a life as contemporary office space without losing their distinct character.”

Ruffer will occupy 2,000sq ft across the ground and first floor of 31 Charlotte Square, taking up its occupancy on 6th January. Cushman Wakefield and CuthbertWhite acted on behalf of Corran Properties. Burns & Shaw acted on behalf of Ruffer.

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>> Two new tenants

>> Energy firm expands

Two new tenants have signed up at Bandeath Industrial Estate, by Stirling, secured by Graham + Sibbald and Ryden.

Xylem Water Solutions has agreed a five-year lease for units that exceed 9,000sq ft, together with attached yard area. Robertson Facilities Management, part of Robertson Group, has taken a three-year lease for a 3,000sq ft unit.

Andrew Peel of Graham + Sibbald said: “As well as the lettings to Xylem and Robertson, H & R Gray Haulage has taken an additional 14,48sq ft at Bandeath. It has agreed to a ten-year lease.

Scotland’s leading energy company has agreed terms with East West Storage to lease additional space at the Westway Park in Renfrew, which is owned by Moorfield Group.

East West Storage has signed-up for Block J, which extents to 84,000sq ft on a tenyear lease at a rental of circa £3 per sq ft.

The premises have undergone extensive refurbishment, funded by East West Storage and Moorfield Group.

East West Storage which has been re-awarded the storage contract for Scottish Power has been a Westway occupier for the past five years and the additional space will be used for storage and additional business interests.

Raymond Murray, director of East West Storage said: “We are delighted to continue to provide storage space for Scottish Power on a longer-term basis. We have benefited from a Westway location for some time and feel that it continues to provide us with the ideal property solution.”

Andrew McCracken, of joint agent Jones Lang LaSalle agrees: “The quality of space and location was key to East West Storage, along with flexible terms. Westway offers high quality accommodation within a 24-hour secure environment and continues to appeal to a wide range of occupiers in the west of Scotland.”

Mark Holmes of Moorfield said: “This deal underlines East West’s commitment to Westway, as it continues to offer the ideal property solution. We are always seeking to improve Westway and remain committed to providing the right product and terms to meet occupier’s business needs.”

Other occupiers include Doosan Babcock, Star Refrigeration, Malcolm Logistics and Steel Engineering. Westway joint agents are Jones Lang LaSalle and James Barr.

>> Move the furniture Aberdeen solicitors and estate agents The Law Practice have bought the premises of furniture and homeware retailer Anie Mo’s. The 2,110sq ft property, in Holburn Street, one of the main thoroughfares into the city centre, benefits from a large frontage and good visibility.

Shepherd Chartered Surveyors completed the deal. Margaret Waldron from The Law Practice confirmed: “This purchase will provide us with a larger base to allow our firm to carry out necessary expansion to the business.”

>> Retail’s new phase A new phase of retail development is now underway at Greenlaw Village, Newton Mearns, Glasgow. The one-acre site was recently acquired by Gleniffer Developments, part of a £3m investment advised by Graham + Sibbald, and 20,000sqft of new retail space is being built, partially pre-let to Home Bargains.

>> One for the team Heriot-Watt graduate Martyn Stevens has been appointed as a building surveyor in Shepherd Chartered Surveyors’ Dundee office, the latest recruit to its expanding building surveying team across Scotland.

>> Anniversary cheer Buccleuch Property celebrates its tenth anniversary with a recovery in the property market which sees the Edinburgh-headquartered company in a strong position to generate more business. Managing director, David Peck (above) believes the market is gathering momentum across a range of sectors.

“We’ve just sold the Evolution site on Glasgow’s Oswald Street to German hotelier Motel One for the construction of a new £18m hotel which follows the start of two new speculative units totalling 25,000 sq ft on the Aberdeen Energy Park and recent completion of the £32m redevelopment of York’s former railway station to provide a new HQ for the city council and a 100-bed Hampton by Hilton Hotel.”

Through Queensberry, a joint venture with Cruden Homes, Buccleuch has also been active with two new residential developments in Edinburgh; following the recent purchase of Edinburgh Academy’s former boarding houses on a 1.25-acre plot in Trinity, Queensberry will transform the three large B listed Arts and Crafts villas on the site into luxury apartments with an estimated end-value of £9m.

Queensberry has also just entered into a partnership with London-based Telereal Trillium to build 81 new homes and apartments on a 4.9 acre site in the upmarket Grange area of Edinburgh with an end value in excess of £50m.

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Academy’s boarding houses to become luxury flats

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COMMERCIAL PROPERTY

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>> Hotel for Aberdeen Upmarket hotel operator Marriott has been selected as the preferred tenant for the Marischal Square hotel site in Aberdeen.

Aberdeen City Council has backed the recommendations, supported by the Marischal Square Working Group, to select the Marriott Residence Inn as the preferred brand for the four-star hotel, which will be operated under franchise by Cycas Hospitality.

Property consultancy CBRE, alongside CBRE Hotels, secured the operator on behalf of Muse Developments.

The Aberdeen Marriott Residence Inn will be one of the first in the UK. The new Edinburgh hotel is the second Residence Inn in Europe, following the opening of the Munich hotel last year.

Deputy council leader Councillor Marie Boulton, who chairs the Marischal Square Working Group, said: “We gave Muse and CBRE a clear remit to identify a four-star hotel operator which would satisfy the working group’s desire to see a high-quality hotel in Marischal Square.

“Marriott is a very well-known hotel chain, renowned for providing a high level service.

Although the Residence Inn brand is not yet well known in Europe, it has a high reputation in the United States, Canada and Mexico, where there are more than 600 Residence Inn hotels. This will be one of the first Residence Inns in the UK and the company’s clear desire to place its brand in such a prominent development reflects the level of high interest that major firms are showing in doing business in Aberdeen.”

>> Precision planning Acting on behalf of Realm Fire & Security, Shepherd Chartered Surveyors has sold a 0.31 hectare development site with planning permission for an industrial facility at Barra Business Park, Oldmeldrum to precision engineering firm Challenge Products for £205,000. With planning permission for the construction of three terraced industrial units or a single larger facility, the fully serviced site within the Barra Business Park is located on the west side of the B1970 Oldmeldrum and Inverurie Road on the southern boundary of Old Meldrum, 17

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>> First speculative build since 2008 Work has started on the West Edinburgh Business Park development – a 1.69-hectare business development on the western periphery of the capital - the first speculative industrial development of its kind in the city since 2008.

Phase One will provide 26,264sq ft of modern industrial accommodation in two terraces with unit sizes from 3,283 sq ft upwards with consent for Class 4 (business), Class 5 (general industrial) and Class 6 (storage and distribution) space, including an allowance for 20 per cent of the floor area to be used for trade and retail sales. These units are due for completion in autumn 2014. Design and build opportunities are also available on Phases 2 and 3 of the development.

The business park, situated on the south side of South Gyle Crescent, is being developed by J. Smart & Co. (Contractors) plc, on the former Pentad site in West Edinburgh. Each unit in the development will benefit from a specification including power floated concrete floors, profiled metal sheet roofing incorporating about 10% translucent light panels, and a generous secure communal loading yard, with allocated parking bounded by metal palisade fencing and security gates. Jones Lang LaSalle and Burns and Shaw are joint agents for the park.

miles north west of Aberdeen and five miles north of Inverurie.

James Morrison, surveyor at Shepherd’s Aberdeen office said: “We are delighted to secure this sale of an industrial development site which is perhaps evidence of the growing demand for industrial premises outwith already well established locations.”

Industry’s looking to new pastures

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>> Women’s network Property consultancy CBRE has hosted its first Scottish Women’s Network event at the University of Glasgow. The CBRE Women’s Network is an initiative to help support and develop women in the world of commercial property. The first Scottish event was when Ann Allen, director of estates and buildings at the University of Glasgow, spoke about her career and experiences, as well as her work as a trustee for the Ethical Property Foundation.

Focusing on three key areas; recruitment and retention, networking and professional development and community spirit and philanthropy; the network aims to support skills development and aid women’s success both within the company and the industry.

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>> Glasgow’s appealing A handful of retail property deals in Glasgow city centre has been sealed.

The firm has let 19A Renfield Street to travel and leisure company Minoan Group for five years on a stepped rent from £32,000 rising to £37,000 in year five. Occupying a busy location on one of the main arterial bus routes through the city allowing immediate access to the main retail areas, the 1720sq ft property also benefits from being part of the central office district.

An 1800sq ft retail unit at 8 Wilson Street on its junction with Candleriggs in the heart of the Merchant City has been let to Pastticceria Jo-Jo for five years with rent of £20,000 rising to £21,000.

The 645 sq ft Unit 8 at the Italian Centre, has been let on behalf of The Carlin McLaughlin UK Property Pension Fund to Elite Brands.

COMMERCIAL PROPERTY

>> Airline secures a new headquarters Scotland’s regional airline Loganair has acquired a new headquarters in one of the biggest out of town office deals in the West of Scotland this year. Graham + Sibbald advised Loganair on the deal and its Building Surveying Department will now project manage the fit-out of the building over the next three months. The office at Cirrus Business Park is directly adjacent to Glasgow International Airport and Loganair’s 14,100sq ft suite will house a new pilot training centre, when it is occupied early in 2014. Steven McGarva, partner at Graham + Sibbald, acting on behalf of Loganair, commented on the deal: “We are delighted to have secured this property for Loganair. We had looked at a number of potential locations on their behalf and carried out feasibility studies to ensure we found exactly the right building. We look forward to working with our client over the coming months ensuring the fit-out is carried out to the highest standard.”

David Harrison, chairman of Loganair, said: “Our new premises are exactly what we were looking for as an expanding and highly successful airline. The proximity to Glasgow Airport, one of our busiest hubs, as well as the modern, high-quality office space on offer, will suit our needs as a business for many years to come. The new facility allows us to develop a training centre that will enable us to train and up-skill our next generation of pilots and engineers, ensuring the airline continues as a market leader in the area in which we operate.”

DTZ and Ryden acted for the landlord Friends Life Limited.

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BUSINESS LUNCH

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A cut above the rest Charlie Miller is a Scottish hairdressing legend, who is celebrating over 50 years in the profession. While he has always been an ambitious business figure, he has also been driven by a set of human values that remain the cornerstone of his brand. Genevieve Robertson enjoyed their lunch-time encounter Charlie Miller is in his ‘gang hut’. He looks dapper in tweed jacket, waistcoat and tie, with his wispy silvery hair flowing back across his collar. He is wearing a pair of owl-shaped glasses and he is friendly and welcoming when we meet. I can appreciate that all those sitting in a leather salon chair, awaiting Charlie’s brush and scissors, would have been equally put at ease by his unforced charm.

When we meet, he is sitting in his regular window-seat in Centotre, the Italian restaurant in 103 George Street, which has become a haunt for so many of Edinburgh’s business people.

“This is my gang hut,” he says. “I bring all my friends here. The food is good and you always get a great welcome,” he says, as Victor Contini, the always-attentive director, nods over toward his table.

Everyone has heard of Charlie Miller: a wonderful Edinburgh hairdressing institution.

Many have even had their hair cut and blowdried by him. His reputation, however, is global and he is in the British Hairdressing Hall of Fame [so too are his son and daughter-in-law, Jason and India] for the number of times he has won the British Hairdressing Awards’ title

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of Scottish Hairdresser of the Year.

Before we start to talk about his business life, he wants to make a point. He says that throughout his career it has been his wife, Janet, who has remained his stalwart adviser and the person whose judgement he trusts beyond any other. “Janet has been at my side.

She would often tell me to do things and it would work and I’d get the credit. She’s so insightful.”

“I’m a values-driven businessman. Everything I do is based on these values. I’m a constant searcher,” he says as we chat about what makes him tick.

An early – and special - influence was Charlie’s uncle Peter Hislop, who passed away at 92,

only days before we sit down for lunch. When Charlie was 14, Peter encouraged his reading by giving him books, including The Bhagavad Gita, a spiritual guide to life, The Doors of Perception by Aldous Huxley, a recollection of Huxley’s LSD trip (although Charlie and his uncle never took drugs) and How To Live Successfully.

“I was ignited by Peter. He started me off. He prompted me in that direction,” says Charlie as he wipes away a tear of respect. “Every decade there is a popular spiritual book, usually fictional. Peter gave me The Third Eye, a story about a Tibetan boy who becomes a monk.

The author was Lobsang Rampa, but the book was actually written by Cyril Hoskin, >>

Scotland produces a lot of creative people and they have to move elsewhere to make it happen – London, Paris or New York. I love Edinburgh and I wanted to contribute to the city, it has always been one of my drivers

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who never set foot in the mountain region.

He must have had an amazing imagination because people believed he had been to Tibet.

All of this triggered off my sense of inquiry. I’m so grateful to my uncle. Although I had to wait until the Maharishi arrived in 1967 by way of George Harrison of the Beatles to get to the next stage in my search.

Charlie Miller left Niddrie Marischal school in Craigmillar and started as a male trainee hairdresser at Bob’s in the West Port, working alongside Joe Mooney. “Joe was my best-man when we got married, he’s a great guy.” It was a fabulous learning experience in the early 60s at a time when the Tony Curtis/ Perry Como flat-top hair-dos were in demand, and blond heart-throb Illya Kuryakin, played by Scotsman David McCallum, was the star of The Man from UNCLE (Joe was the first to have this look) and in those days Cossack, Brylcreem and Vitalis were must-have accessories. It was here that he learned the rudiments of ‘precision cutting’, a key to his later success. A little known fact is that men’s hairdressing used hand hair driers for blow-drying before women took to it in droves.

“Going into ladies’ hairdressing was an easy transition because I was able to apply the same thinking with my precision cutting. When I saw Sassoon doing his famous geometric cuts I realised I could do that too. The training at Bob’s couldn’t have been better and I still appreciate it to this day. Then I started my own business in 1965 and looked after a wide range of clients from the Mods who arrived at the salon door on their Lambrettas to the classic cut clients in their Rolls Royce and E-Type Jaguar.

After a spell in Rose Street, with partner Charlie Mearns in His Hair, a men’s hairdresser above the famed ‘I Found it at Bruce’s’ record shop [run by Bruce Finlay, another of Charlie’s ‘Gang Hut’ friends who went on to manage Simple Minds], Charlie Miller decided to open in a basement salon in Stafford Street at the West End. He has been in that street for 40 years and with the Directors has opened a further four salons within the city and established a global reputation for styling around the world.

Charlie was in the vanguard of the new breed of exciting and entrepreneurial hair-cutters

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and stylists, along with Brian Drum and Irvine & Rita Rusk in Glasgow. The Scots were invited by talent-spotter Renato Brunas, who organised and promoted European shows with the iconic Vidal Sassoon, and created Crazy Color, a product that brought a new dimension to hair colouring, and they took London by storm in 1976 with their ‘Super Scots’ show. Since then Scotland’s hairdressing stars have seldom looked back. Today, Charlie’s son Jason and daughter-in-law India have taken Charlie Miller the brand into a new international stratosphere, working with L’Oréal Professionnel across the globe from Europe to America, South Africa to Korea and the Middle East, and more recently they featured in Chinese Elle magazine.

Charlie has worked all of his life connecting people and during his spiritual search he met two remarkable young men, George McBean and Stewart Mitchell, looking for a yoga teacher. There were no yoga teachers in Edinburgh and Charlie organised an introduction to a teacher of ballet, William Mowat Thomson who also had a strong interest in yoga. This meeting led to the foundation of the Scottish School of Yoga “If you have a yoga tree, this is where it all started in Scotland. I connected with it in a deep way and that’s where my journey has gone, through yoga, Buddhism and the Christian mystics. What am I? I call myself a spiritual nomad – and over the years I have met some amazing people,” he smiles.

This includes the Dalai Lama, whom Charlie has met several times. On one occasion in 1988 Charlie had the opportunity to gift him with a hair clipper in a tartan pouch. When he visited Dharamsala in India to meet with the Dalai Lama again on the invitation of one of his ‘gang hut’ friends Sir Tom Farmer, His Holiness told him that he still uses it. Charlie also drove Thich Nhat Hanh, the exiled Vietnamese peace activist, Buddhist monk and authority on dispute resolution, on a ten-day teaching visit to Scotland.

“You could put the Dalai Lama and Thich Nhat Hanh in the same room and there would be a deep connection between them. They are on a similar spiritual level,” says Charlie Miller, fixing his tie for his photograph. Back in Rose Street days, a psychiatrist client and friend

BUSINESS LUNCH

Professor Henry Walton, knowing of Charlie’s interests, steered him towards Dr Carl Rogers, the American psychologist who established the person-centric approach to human relationship.

It was a simple booklet that exactly articulated Charlie’s way of working.

“The beauty of Carl Rogers was that he put

it into three words. If you are working with another person, which a hairdresser does all the time, then you have to be genuine, you have to have empathy, and this is the best bit, you have to have non-possessive warmth.”

Sorry, Charlie, what is that?

“You see, that gets people all the time.

Centotre: The Italian soul in the heart of Edinburgh Centotre is not a fussy place. It simply does what it does best. It serves fresh and seasonal Italian food in an authentic way. While it enjoys a spacious setting, with its white Italianate pillars of a former bank, it is also surprisingly intimate, which is why Charlie Miller calls it his ‘gang hut’.

The menu is a carte of classic antipasti, primi and piccolo dishes, with a special of the month, which was zuppa di cozze, made with Shetland mussels. Charlie Miller explains he’s a ‘vegetarian’ who can eat fish but chooses a simple Mozzarella di Buffalo starter followed by Rucola Salad with fresh rocket, with slices of Italian pears and shavings of Parmigiano-Reggiano.

I chose Calamari Fritti, deep fried squid with Amalfi lemon oil and garlic bruschetta, followed by Raviolo con Spinaci, succulent green pasta parcels filled with local spinach and ricotta, in a very light olive oil. It is a sumptuous dish, ideal for a November lunch-time that needs a dazzle of sunshine.

The food is wonderfully fresh and light to eat. Charlie likes the mozzarella which is dipped in Le Ferre Extra Virgin Oil from Campania.

“This is extremely tasty. They say this Mozarella is the best in the world and I wouldn’t argue with that. It’s not too fatty and has a lovely texture in the mouth along with the olive oil,” he says.

“The fresh food in here has a different flavour with the pasta. This I what I like about it. They take a lot of trouble to bring it from Italy and the atmosphere is great.”

He doesn’t drink these days and enjoys a cup of fresh cappuccino, while I can’t resist a glass of house wine, Borgo Selene, a Catarratto-Inzolia 2012 from Sicily which is crisp, lemony and evokes the spirit of Inspector Montelbano on his seaside verandah.

We decide not to go with the tempting array of Italian cakes and pastries. Charlie is obviously looking after his waistline. But the lunch is just right: great chat in pleasant surroundings with unpretentious service. I can see why Charlie enjoys his ‘Gang-Hut’ so much. The lunch came in at about £54 for two.

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BUSINESS LUNCH

It’s warmth that is delivered without manipulation. It is genuine, because you can play games with being ‘warm’. If you are genuine, then you have to be able to do what you say you are going to do. You have to be trained properly, so when you say; ‘how would you like your hair done? you have to know how to do it. That’s genuine.”

Empathy is critical for being a top hairdresser – it’s about doing what is necessary for the customer, and not the stylists’ ego.

“I’ve changed the third part to non-invasive warmth because it is easily understood. You are not playing games with people you are there for them and they feel that. This was what Carl Rogers was saying. I’ve never let these words go.”

Years on, he remains driven by this and has spoken to the Royal College of Physicians

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in London and general practitioners in the NHS about how they could use Carl Rogers’ thinking. Doctors, it seems, can learn a lot from hairdressers, who are regularly polled as the happiest people in the workplace.

Over the last 20 years Charlie’s search led him to read the great works of American philosopher, Ken Wilber. In the 1980s, Charlie and Janet were watching an interview with former President Bill Clinton. Charlie pointed at the screen saying: “He’s reading Ken Wilber.” Janet wondered how he knew and some years later President Clinton mentioned in a talk at Davos that he had indeed been influenced by Wilber’s work and theories.

You can see why Charlie Miller is so at home in his ‘gang-hut”. It’s in the heart of George Street, where you never have to wait long before you bump into old friends.

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“Scotland produces a lot of creative people and they have to move elsewhere to make it happen – London, Paris, or New York. I love Edinburgh and I wanted to contribute to the city, it has always been one of my drivers. Having the good fortune to make a contribution to the city has been a joy for me,” he says.

In 1991, he was asked by the Knightsbridge hairdressing legend, Xavier Wenger, about his five-year plan. Charlie was puzzled.

“That’s not the kind of ambition I had. I didn’t have a plan. I said I was ‘organic’. The term just came into my mind. I just did what I did and when the quality was right I moved forward. Quality is the driver. When something is completed and right, then I move on to the next salon.”

“We are highly training orientated and have trained many hairdressers. The salons are always well run by the managers who share my values of genuineness, empathy and warmth. We are fortunate to have good people,” he says.

As he considers semi-retirement, he has no qualms about the business today. “I’m never worried about the business. My son, Joshua, runs the business with Jason, and is chairman of the George Street Association.

He loves doing that. While Jason and India – ask anybody – they are amazing, so I don’t need to worry at all. Ian Blyth, a long-term friend of 40 years and a Director works closely with Jason, Josh and India and looks after education at our Academy in Holy Corner.

They have different ambitions to me and will grow the business more. But they share the same values.”

One of Charlie’s other passions - he says it is humbling - is his work with the Teenage Cancer Trust and the Hair 4 U project which helps young people suffering from cancer who have lost their hair to have the opportunity to have a free real hair wig styled by the best hairdressers in the country. Charlie Miller has devoted his time to styling the individual wigs.

Perhaps it’s the Buddhism, and the on-themove meditation, or even the Centotre coffee, but as Charlie Miller disappears off into the afternoon, you sense a person who is at one with himself – a great place to be in this mad and chaotic world. n

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BODGER ON WINE

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BODGER ON WINE

A Kiwi converted by a French try

Paul Bodger arrived in Scotland from New Zealand in 1998 to play rugby at Langholm in the Borders. He’s been here ever since. He now runs one of Scotland’s most successful fitness companies with partner Josh Bicknell and former tennis player Johnny Curley. So how was a Kiwi going to have time to sample a French wine?

There must have been a misunderstanding.

A nice one though. When the Editor of BQ contacted me to ask me to sample the wine for this edition, he reckoned the title of my business was a dead giveaway.

With a business called Anytime Leisure, he presumed that I’d be prepared to sample French wine on a cold and damp Monday morning. I tried to persuade him that we were in fact a company supplying equipment for the commercial fitness market in Scotland. That’s running machines, cross-trainers, spinning bikes and dumbbells. Our business acquired Cardinal Sports in 2011 and we’ve been in the game for 25 years. But the Editor simply wouldn’t listen and was extremely persuasive. And, being a Kiwi, I was certainly up for a challenge.

So the morning after the All Blacks delivered a lesson in rugby to the hefty English bruisers at Twickenham, and nursing a celebratory hangover, two rather fine bottles of wine arrived at our studio outside Edinburgh. Now anyone who has recently stepped into a gym in the last 20 years will know that glass and exercise machinery do not mix, so once our photos had been taken, the wine was wrapped up and taken home.

I wasn’t really going to share a couple of bottles with our 33 staff, was I? I knew that Julie, my wife, who oversees our other business Time

Fitness, is a connoisseur of the grape juice, so we decanted back to my house where we began the sampling. Strewth! I thought the Editor was going to give us some great New Zealand sauvignon blanc wine from the Marlborough region to sample – but he pulled a flanker: it was French. Surely I was being sold a dummy. One of our top-selling products is the new range of cast iron kettlebells. It’s a fitness activity that has grown in popularity at home – but I think it still has a long way to go to catch up on the traditional evening exercise of lifting the wine bottle and pouring a glass of vino. After celebrating the All Blacks win, the thought of a wine tasting was a little daunting. But Julie and I, knowing how fierce the Editor can become, soon managed to get into it.

So how did our French cousins do?

First up was the Mas des Bressades Costieres de Nimes 2011 at £10.99 a bottle. As a big fan of CNdeP, I was curious to taste this one, as Syrah is one of my new favourites. This is a blend of 55% Syrah and 45% Grenache grape which easily out-performs many wines from its more famous neighbour. It’s packed with dark fruit and earthy spice and is the perfect partner to a cassoulet. How can I admit this? It was outstanding!

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Rich, deep…. And I will definitely be buying some. Then the Puy de Dome Pinot Noir 2011 at a surprisingly decent £9.49 a bottle.

Julie and I found it a greatly quaffable Pinot, very drinkable. Too drinkable in fact. It was beautifully soft and particularly good with chicken liver pate. However, this time the blanc made it over the try line and converted us. And a bonus point too, there was no hangover in the morning.

How can I face my fellow country men and admit that good value French wines are once again giving our Kiwi stars a run for the money? Well, we All Blacks like to give credit to good-triers. Meantime Anytime Leisure and Fitness Scotland, the governing body of health and fitness in Scotland, have a great working partnership, but I think it’s probably best that we don’t recommend drinking too much after a healthy workout. Although being a Kiwi, I reckon you have to take your leisure time seriously, and if that includes a light libation, even a French one, then my view is: ‘Go For It’. n www.anytimeleisure.co.uk Thanks to the incredible Pete Stewart and Andy Bell, secretary of the Glasgow whisky club, from Inverarity One to One, 185a Bath Street, Glasgow, G2 4HU, who somehow manage to pick some fine wines at great prices.

Phone 0141 221 5121.

BUSINESS QUARTER | WINTER 13

MOTORING

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Comfort and joy Jamie Rae, the founder of Redeem plc, took the new hybrid S-Class Mercedes for a work-out and found it a luxurious way to enjoy the open road I started my entrepreneurial business life driving an ice cream van in the housing schemes of Falkirk. I learned the importance of cash flow in these early days selling ice cream.

My van had all the bells and jingles that you would expect but it was a struggle to push it over 30mph.

All through my working life, I’ve enjoyed the pleasure and thrill of driving. As I set up a print and design company, which became Redeem plc, we had a second-hand Citroen Berlingo, than a Toyota Hiace van to move the recycled ink cartridges. Then, as we expanded, we needed lorries to do the heavy lifting of pallets of mobile phones, computer and tablets that were flown out from Glasgow to be recycled in Hong Kong.

As Redeem became more a major business – sharing our success with charities across the UK by donating in excess of £10 million - I was able to drive some nicer and faster vehicles.

However, it wasn’t until I sold Redeem in 2011 that I had money to spare on buying a luxury car. I had a great deal of fun with a Bentley Continental GT, then I found that a 4X4 Range

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Rover was more practical for my needs as I set up the Throat Cancer Foundation. However, I’ve always had a sneaking admiration for the S-Class Mercedes. It always looks sleek and stylish.

So when BQ had the opportunity to test drive the latest S400 Hybrid Long Wheel Based AMG version with the all-new electric engine, I reckoned it was not to be missed. With a price tag of £88,385, including some extras, it’s no surprise that I describe the S Class as luxurious. The car is eerily quiet and smooth especially in electric power mode.

Having driven hundreds of thousands of miles

on business over the years, I appreciate that being comfortable in the car is critical. It helps you arrive fresh for a vital meeting. The Merc has excellent seating position with plethora of fine adjustments that makes finding the perfect driving position easy.

There was effortless response and poise from a seven-speed gear box with the changes imperceptible. I’m a geek for measurement: what I liked was the impressive information screens making all adjustments on the road easy – and keeping your speed on track – while you can select your favourite radio channel, in this case BBC Radio Scotland, >>

Behind the wheel and on the road, I felt cosseted and extremely comfortable.

Varying between ‘Sport’ and ‘Comfort’ mode there is a discernible difference in handling

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MOTORS

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MOTORING

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without hassle. The navigation systems just seem to get better and better and this one was impressive. The 360 degree camera system is the best I’ve experienced and makes parking simple for such a large car, which is good as rear visibility is poor.

Behind the wheel and on the road, I felt cosseted and extremely comfortable. Varying between ‘Sport’ and ‘Comfort’ mode there is a discernible difference in handling. The Sport mode is remarkably smooth and responsive while the Comfort mode is like floating on a cushion. This was a joy to drive.

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Visibility is good for such a large car. The styling isn’t that different from the previous S Class, however it is sleek and has considerable presence. I’m not sure how effective the Eco hybrid model is – that’s one for the petrol-head boffins. If you’re in a city and making lots of short journeys, I reckon it could be useful. Official figures show it returning 35 mpg, which is fairly good for such a large beast. The model I had was the extended lengthy version providing masses of leg-room for rear passengers.

It is a car to be chauffeured in, with that

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in mind the rear cabin area is excellent and beautifully upholstered. The rear seats recline to allow a more relaxed seating position and the ability to stretch your legs out.

There is no doubt the S-Class will get you to your meeting in great shape. However, that might be a problem for anyone wanting a bit more ‘action’. The Merc is comfortable for sure, but I have to admit I didn’t find it an exciting drive. It didn’t have my pulse-rate racing. Perhaps, that is not the point. So my suggestion is, if you want something a little racier and pacier, than you need to go back to the showroom and ask for something with a bit more noise and dash.

Overall, the S Class is a great car. It is a leader in its class, but I would only opt for the hybrid if I was doing a lot of city driving, and the extended length if I had a chauffeur. But that would need me to set up and grow another successful business – and that’s something to talk about another day!

Jamie Rae was the managing director of Redeem plc, which he sold in 2011. Since then he set up the Throat Cancer Foundation, which has been campaigning for the HPV vaccination in Scotland to be extended to include boys. n The car Jamie drove was Mercedes S 400 Hybrid L AMG Line with an OTR price of £88,385.

Thanks to Graham Affleck and his team at Mercedes-Benz of Edinburgh, 12 Edinburgh Road, Newbridge, Edinburgh, EH28 8QW.

The New S-Class. Iconic Innovation.

The S-Class can’t give you more hours in the day, but it makes sure you get a lot more out of every minute.

The All New S-Class is available to test drive now at Mercedes-Benz of Edinburgh, and Mercedes-Benz of Coldstream.

To test drive the incredible S-Class, call Mercedes-Benz of Edinburgh or Mercedes-Benz of Coldstream today on 0844 844 2254 Mercedes-Benz of Edinburgh Edinburgh’s Luxury Car Village, Newbridge EH28 8TG

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www.mercedes-benzofedinburgh.co.uk | www.mercedes-benzofcoldstream.co.uk Official fuel economy figures for the Mercedes-Benz S-Class range: Urban 26.6 – 36.7mpg (10.6 – 7.7/100km). Extra Urban 44.8 – 52.3mpg (6.3 – 5.4/100km). Combined 35.8 – 45.6mpg (7.9 – 6.2/100km). CO2 emissions 184 – 164g/km.

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FASHION

waxing lyrical Barbour’s managing director Steve Buck tells Josh Sims about the iconic clothing brand’s evolution from fishing boats to the world’s fashion hotbeds “The North East of England is a cold, wet, grey place,” says Gary Janes, doing little for the local tourist industry. “But we love it. That said, it does come with certain demands.”

Protective clothing might be one, which is why the area is also home to an icon of menswear: the waxed jacket.

Founded in South Shields by Scotsman John Barbour and 120 years old next year, Barbour is still independent and still making jackets for the horse-and-hound set with which it has come to be most closely associated - “that dream of life in the British countryside that appeals more internationally than it does at home,” offers Steve Buck, the company’s managing director for the last decade.

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Yet it might be time for that stereotype of Range Rover, tweed and labrador to hang up its wellingtons. Barbour’s latest incarnation is much more slick, adding to its authorised Steve McQueen and its International biker style (also now set for development next year) to create styles more for bar and boardroom than field and paddock, its Royal Warrants with Queen Elizabeth and Prince Charles notwithstanding.

Having appealed to a more fashion-conscious shopper with its Beacon Heritage collaboration with Japanese designer Tokihito Yoshida, now Barbour has teamed up with Savile Row’s it-tailors Norton & Son (whose chief is Patrick Grant, lately on the BBC’s ‘Great British Sewing Bee’) on a new, >>

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FASHION The target here is the aficionado who likes clothes not everybody else has

on-going line of sharper, 11oz waxed jackets - including a velvet-collared single-breasted, hunting jacket-style, quilted jacket and calf-length all-weather waxed overcoat - as well as Guernsey and other chunky knits, blazers and shirts. It really takes Barbour where it hasn’t been altogether at home before: onto smart city streets, albeit ones that are as much prone to chilly winds and downpours as country lanes.

“We like collaborations to challenge pre-conceptions without shocking anyone - besides, I’m not sure that country stereotype with which we’re associated really exists. You’re as likely to see Barbour wearers in Gucci loafers as much as wellies,” explains Buck. “And his collaboration deepens our story as a British brand and aims to show that our normally rugged style can be more refined and tailored.

The target here is the aficionado who likes clothes not everybody else has. The thing that has amazed me working

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for the company is that everybody has a point of view - that can be a strength, but it also makes it difficult to do something new.”

But with its Beacon Heritage Norton & Sons line, Barbour has hit that target with what is the most successfully styleconscious collection it has devised in years, albeit one based on considered tweaks of archive pieces. “That’s really the beauty of any Barbour jacket - it’s less designed as evolved, with details added bit by bit,” suggests Janes, its co-creator.

It certainly moves the company on from its more traditional, country style and returns it more to its industrial roots outfitting fishermen, dockworkers, later even submariners and, during the Falklands Conflict, the Cowan Commando jacket for special forces. This is a long way from the ‘Horse and Hound’ set.

Not that the country image has not been a beneficial one - >>

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We’re half-way along that path from being a manufacturing company to a lifestyle brand

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it was Dame Margaret Barbour, chairman of the family firm, who designed the benchmark Bedale style of jacket and drove the Sloane Ranger image overhaul that first saw Barbour on the backs of aspirational urban folk 30 years ago. But perhaps that has run its course: time to reappraise the waxed jacket as utilitarian chic - a Swiss Army knife of outerwear with, thanks to a Savile Row injection, a smarter casing.

Indeed, it is not just the jackets that are pushing on. The company is expanding too, which is good news for the North East. A fifth line will be added later this year to its four lines of 20 seamstresses - and one solitary, brave seamster - in order to meet growing demand. These are the women - and one man - who together assemble some 140,000 jackets a year, many with those distinctive characteristics: the check lining, bellows pockets, the throat latch, the cord collar, ring-pull zip and, of course, the waxed cotton (the wax prepared,

Coca-Cola-like, to a secret formula). And, behind the scenes, its repair service may give new life to well-worn jackets to which their owners are too attached to let go - making the occasional find in the pockets, including, on one occasion, the key to St James Palace. But actually waxed jackets now only account for 30% of Barbour’s sales by value, albeit that still amounting to a hefty chunk of £122m. There is, it seems, good business beyond the wax.

“Without wishing to use a cliche we’re half-way along that path from being a manufacturing company to being a ‘lifestyle brand’,” says Buck. We try to appeal to more fashion and more mainstream consumers and neither seems put off by the other - all seem happy to be part of the broader brand. We want to keep growth gradual.

Besides, there’s no exit for the brand since Dame Margaret wants Barbour to be family-owned forever.” n

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a roller that bites 69

After the Phantom and the Ghost comes the Wraith in Rolls Royce’s drive to remain relevant to the global jet-set, says Josh Sims >>

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EQUIPMENT The name is perhaps the first indication of the gap Rolls Royce is seeking to fill in its portfolio with the Wraith, the company’s latest step - after the Phantom and the Ghost - in its renaissance under BMW ownership from ‘Downton Abbey’ threatened irrelevance to contemporary super-brand. It is named after the company’s two-door sports model - yet one with serious coachwork - of 1938. “And certainly the Wraith is following in that heritage,” says Giles Taylor, Rolls Royce’s design director. “The name was actually decided on not long before its launch, but perhaps ‘Wraith’ was always destined to end up on this creation.

It’s a very fast, very comfortable, two-door, true four-seat fastback - which hasn’t been done before. It really is a new kind of car for Rolls Royce, but relevant to our customer.”

That’s a customer who is younger, sportier, more style-conscious, who’s after a more ‘feel it in the pit of the stomach’ driving experience but without losing Rolls Royce’s celebrated ‘waftability’ - “the power to give great, effortless pace, but also silence in the cabin and a distinctive cushioning,” as Taylor describes it. “A car like the Wraith is all about capturing modernity in a timeless way, without wishing to sound contradictory. It’s what Chanel does in fashion. It’s now but it’s also classic. I’d go so far as to say it’s my favourite of the new generation of Rolls Royces - it just has ‘it’, that sense of glamour.”

Certainly the Wraith’s stats are impressive: a 624 bhp twin turbo V12 giving 0-60mph in 4.4 seconds, making it Rolls Royce’s most powerful drive-train to date. So too the tech: the debut for Rolls Royce of SAT or Satellite Aided Transmission, for example, which processes GPS data to predict the driver’s next move and automatically select the right gear for the road

A car like the Wraith is all about capturing modernity in a timeless way

ahead, thus avoiding unnecessary gear changes and giving smoothness of ride. Navigation is voice-activated and can be app-controlled from a smartphone. Speaking of which, it also has an iBrake, a radar/camera-based system that assists in emergency stops.

But the Wraith is no ‘gentleman’s club on wheels’, as Rolls Royces have often been described, though gentlemen may still apply for ownership. Indeed, Taylor doesn’t go so far as to recommend string-backed driving gloves,

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pipe and cravat, but he does rather reckon his new design is “very much suggestive of the gentleman’s gran tourismo, of the classic GT era of the 50s and 60s, which is perhaps a rather romantic idea, but it does seem just right for getting from Mayfair to Monaco and allowing you to turn up looking the part.”

Of course, passing through Mayfair one would be hard not to at least see some connection between the Wraith and a gentleman’s club after all - and that is both the refinement >>

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EQUIPMENT

of the Garrick variety and the sexiness of the Raymond Revuebar kind. Certainly the Wraith’s interior is not short of leather, although the company prefers the comparison of a luxury yacht than an old Chesterfield sofa. And Taylor is enthused by the large door panel in onepiece wood veneer - specifically Rolls Royce’s new open grain wood treatment, Canadel panelling - the largest of its kind in the industry, he suggests. Even the grain is angled to give a sense of forward momentum.

Such details are to be expected, both from Rolls Royce and at Rolls Royce prices.

More important, for the Wraith and what it represents at least, is that sleek, almost aggressive exterior, which took some inspiration from Taylor favourite classics the likes of the Maserati A6G, Maserati Ghibli, Aston Martin DB4 and DB5. The Wraith is shorter and 50mm lower than the Ghost, enough that the driver feels closer to the ground. While any other car design looking to suggest speed would reflect light from the under-carriage to further suggest a car hunkering down, the Wraith, Taylor notes, sits up. It floats rather than prowls. The grille looks like a real air intake too - because it is “and not a decorative touch, which is true for other Rolls Royces,” he adds. The car’s upper and lower halves being in different tones give it a nautical effect, one emphasised by frameless coach-doors and the lack of a B-pillar (which can make for an exhilarating ride all windows down). And, perhaps most strikingly - and

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certainly what gets its designer most animated - is the Wraith’s one strong, unbroken line bisecting an already sleek silhouette.

“It has a sense of clean architectural surface language,” as Taylor puts it in designer-speak, meaning, in short, that the whole look hangs together with a minimum of fuss to distract the eye. “Look at the side of the car and there’s a very strong sense of linearity to it - which was actually a real challenge. There’s nothing extraneous. The Wraith is definitely a very modern but crafted contemporary piece of design of the kind that Rolls Royce customers are looking into. As a company we now stand for nicely modern cars - but we can go another step without starting to lose out to the fashionconsciousness there is in car design now.”

Taylor is presumably working on taking that next step now. But he isn’t saying in which direction he’s pointing or how big a stride he may take. n

It really is a new kind of car for Rolls Royce, but relevant to our customer

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Think Smart: Act Local

Kevin Priestley, the managing director of an innovative engineering company which made the lecterns in the Scottish Parliament, says the tide has turned as the nation learns to love manufacturing once again. He spoke to Carlos Alba in his North Ayrshire factory Kevin Priestley sees himself as a barometer of Scottish manufacturing. As managing director of the fabrication firms NPI Solutions and Vacion, fluctuations in the country’s output is reflected in his order book. He’s also outspoken in his defence of engineering in Scotland.

His companies manufacture and fabricate components, assemblies and fixtures for a range of clients, as well as the nuts and bolts and shells and casings for all manner of products in the defence, medical and aerospace industries.

Medical and leisure products are going through a purple patch while defence and aerospace equipment is out of fashion. As the economy seeks to rebalance away from its over-reliance on financial and soft services, he is expecting growth in commercial and capital equipment orders over the next 12 to 18 months.

Earlier this year, he launched Vacion, a company that manufactures a range of tracking systems for cameras to capitalise on the boom in video production encouraged by smartphones. His products allow photographers and film-makers to take the kind of tracking shots that are a staple of movies. They can move the cameras from left to right or take shots that pan up and down.

Irvine-based NPI also has a Dragons’ Den type function, producing prototypes for novel technologies devised by scientists, engineers and entrepreneurs. Among the prototypes he has manufactured is an electric bike that is a third lighter than any other model on the market, a machine that disinfects hospital wards using a dry purifying technique, an electric beater for Persian rugs and an electronic device for measuring the reversing space for HGV trailers.

Priestley is that rare beast – a maker of things.

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In a country that created its heavy industrial identity in the 19th and early 20th Centuries as the workshop of the world, producing ships, liners, cars, steel, coal and latterly oil, it’s strange that Kevin should have spent most of his professional life feeling like an anachronism.

“For a long time I felt that what we did was sort of old-fashioned. Our factory is dusty and noisy and much of what we produce is heavy and industrial. It’s light years away from the iPod and cappuccino view of wealth creation which, for a long time, was viewed as the future of the Scottish economy,” he says.

“With the 2008 crash and the fallibility of over-reliance on financial services and other intangibles so shockingly exposed, I think a lot of people have come round to the view that, if we are to turn things around and refloat our economy, we need to get back to basics and to start to produce things again. There’s >>

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ENTREPRENEUR a limit to the number of insurance policies and cheeseburgers we can sell to each other.”

Scotland’s manufacturing sector is already showing signs of growth, with confidence on the rise despite weak domestic demand. The CBI Scotland industrial trends survey showed an improvement in exports over the previous three months, as well as a pick-up in business optimism.

The report coincided with official figures showing a rise in the country’s manufacturing export sales in the opening three months of the year. Sales of goods abroad grew by 2.5%, largely driven by food and drink and by the combined petroleum, chemical and pharmaceutical sectors.

NPI’s main customers are OEMs, medium and large product manufacturers, defence industry contractors, design agencies, contract manufacturers, printed circuit board manufacturers and entrepreneurs.

Typical existing customers include Raytheon, Chemring, BAe Systems in the defence sector, Teknek, makers of capital equipment, New Brunswick Scientific, in the medical sphere, and Invotec and Linn Products in the commercial areas.

Priestley believes the UK’s reliance over the past two decades on intellectual capital and service at the expense of manufacturing was based on a set of economic assumptions that no longer stand.

“Purchasers, especially small and medium sized companies, are starting to question the value of offshoring all of their manufacturing requirements,” he says. “The huge savings made in the past by outsourcing production to China are no longer as commonplace. While it may still be 20% cheaper, by the time you have factored in transportation and reliability costs, there’s really not much in it anymore.”

Priestley adds: “There is a trend emerging towards re-shoring production from the Far East. Localisation is gaining ground as the risks of international supply increase along with transport costs and the wage gap is closing, reducing the overall cost.”

“There is a triangle when purchasing manufactured goods – cost, time and quality - and it’s rare for the buyer to have all three points satisfied, especially when dealing offshore.”

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Founded in 2001, NPI Solutions now has a turnover of more than £2m and employs 35 people. Priestley’s first business was Evolvon, which designed and manufactured tooling for the electronics industry, and printed circuit board heat sinks for the printer circuit board (PCB) industry.

His background was in traditional engineering – his first job was with Enco Industries, founded in the boom years of IBM and the rise of Silicon Glen and within ten years he had progressed to senior management level.

Starting out in business when financial support for entrepreneurs was not always forthcoming was a leap in the dark. It was not easy trying to convince banks to lend to fledgling businesses – especially in what was seen as ‘metal bashing’.

“I had been with a well-known high street bank for many years without breaking their terms all the way through our relationship,” he said. “When I decided to go it alone I asked for a £5,000 loan, believing there would be no problems but they refused which came as a real surprise. I could probably have got a £15,000 loan for a car but to invest it in myself was considered too high a risk. I moved my account to a different bank which gave me the funding I needed with fewer questions.”

While running Evolvon Priestley decided to set up another business that became NPI, which was funded differently. He worked part time on the new business with the fundamental rule that he would not seek outside funding as he considered the strings too onerous.

Each step was carefully considered and, by the end of the first year, it had become a basic manufacturing company, turned a moderate profit with no borrowings.

In the company’s first year of trading, Priestley received a telephone call from a company which knew NPI for its manufacturing abilities and willingness to take on difficult projects.

“They asked if I could bend pipes and weld steel. My answer was, of course, yes although at that stage we didn’t do very much of either - machining was our strength. After a few weeks of discussion we had our quote accepted. We had won a significant contract to supply the Scottish Parliament with all the metalwork for the 131 lecterns that had to be made for MSPs,” says Priestley.

“This single contract moved us on significantly, with all the earnings again being put back into the company and no wages being paid. Had we known in advance the complexity and high visual standards that had to be adhered to we would most likely have declined to quote as I suspect others had done before us, but it was from this platform that we became a ‘real company’ employing people that relied on us for a wage.”

NPI aims to increase turnover to £5m and remain profitable within the next three years.

With Vacion, Priestley predicts a turnover of £500,000 in its first year of operation, rising to £2m at the end of year two.

“The economic climate hasn’t helped us in this task but I refuse to allow that to be an excuse.

We can predict with confidence what is probable within the economy looking forward and we have based our strategy around this model. So far this has stood us in good stead,” he says.

“There was a time when “Made in Britain” stood for poor workmanship, this is no longer the case and hasn’t been for a long time. The difference is that now it is believed by >>

A trend is emerging towards re-shoring production from the Far East. Localisation is gaining ground as the risks of international supply increase, along with transport costs, and the wage gap is closing

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the customer rather than just a sound bite being delivered by politicians. It’s not only UK purchasers who attach a value to products made in Britain, even in China, the rising middle class strive to own certain brands that are manufactured in the West and have a heritage. A great example is the Brompton Bikes, despite there being numerous folding bikes manufactured in China, Brompton exports into China and even has a retail outlet in Shanghai – in part because it is designed and manufactured in the UK.” The home market has also become aware of the carbon footprint that supply companies have. This adds yet another reason to purchase from companies located in the UK, according to Priestley “There are some products that are more appropriate to be manufactured overseas, we shouldn’t shun all imports as being low quality or bad on some level but conversely we shouldn’t assume that imported means low cost or the only way to be competitive, things are not as clear cut anymore.

“Attracting and retaining new customers is my number one priority, through this I will

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gain the increased turnover that we have targeted. Cost control, cost reduction and increased efficiency is my next priority as this will aid profitability and attracting and retaining effective team members is essential as they are the lifeblood that will give our customers confidence and allow us to deliver an exceptional customer experience.”

He has managed to sidestep the problems of Scotland’s acute skills shortage in the engineering sector. He is taking on modern apprentices to work in the factory.

“Apprentices, internal training and staff

retention are all important and collectively ensure that the varying demands that companies like NPI experience can be satisfied. We also try and engage with schools wherever there is an opportunity, taking work experience pupils from secondary school or participating in events where outside industry are invited to assist in some manner,” he explains.

“Diversifying our offering by creating new services or own products will make a significant contribution to our sales targets and prevent us from becoming stale, offering the same menu without development. And expanding our geographic footprint will allow for a more stable operation rather than being over-reliant in any one area.”

Kevin Priestley has a personal interest in young companies seeking to commercialise novel technologies.

“It’s very satisfying being asked to produce the first of something and knowing that, before long, it might become a commonplace part of its industry. These products can be functional or artistic in nature. Sometimes the simplest thing can become the most successful and part of the joy of being a manufacturer is trying to gauge how useful a product might become.”

He says there are no magic bullets to making profits. Knowledge is a big contributor to success and it needs more than one individual to be pushing in the right direction.

“The biggest ingredient that can help towards these goals is full alignment within the management team along with ability and drive to get things done while all the time keeping the strategic priorities of the company in focus.” n

It’s very satisfying being asked to produce the first of something and knowing that, before long, it might become a common part of its industry

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BIT OF A CHAT

with Jock Yuler

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He knew nothing about her background.

Dave and Mary fell in love and after they got engaged, it was revealed that his father-inlaw-to-be was the founder of one of America’s biggest retail chains. I recall his shocked smile on hearing he would be living in an apartment overlooking Central Park. Henry Kissinger was among the wedding guests. I was thinking about Dave this week when I saw the stock in his father-in-law’s company is still on the rise – riding out the recession. Dave, why don’t you get in touch anymore?

>> Weir with them I’ve always been an admirer of the Weir Group. After all, my great Glaswegian uncle was a fabrication engineer banging out lumps of metal at Cathcart in the 1940s and 1950s. In the past ten years, a revived Weir Group has been one of Scotland’s true exporting gems. So it’s a shame that its recent interim statement should have gone down so badly with nervy investors. Keith Cochrane, the chief executive, was forced to do some explaining as profits and revenues were ‘slightly below expectation due to further project delivery delays in minerals and a more gradual than anticipated recovery in upstream oil and gas markets.”

If anyone understands how tough the market is, it is the hard-working folks at Weir Group. I see Weir as a barometer for Scotland’s economic health, so anyone suggesting that we’re well and truly out of recession is getting way ahead of their station.

>> Please text...

What’s the quickest way to become a millionaire? Marry a billionaire’s daughter.

That’s what happened to a dear old guitarplaying friend of mine who was living as an £18,000-a-year social worker in Edinburgh. It sounds like the BQ Christmas fairy tale but it is true. Dave, we can call him, was a dashing guy who charmed an heiress with his singing when she came over for one of Edinburgh’s festivals.

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>> Only one way to beat the sharks Am I a lone voice when it comes to credit unions? The Archbishop of Canterbury, Scottish politicians, and even some well-meaning folks in Scottish Government are fixated with battling the pay-day loan sharks, and tell us that credit unions are the future. Yes, credit unions have a niche place. But we’ve just had the scandal of Paul Flowers, the disgraced Co-operative chairman and an unqualified trustee of a massive financial institution that has gone awry, and now massive question marks over the governance of our mutual societies, which were heralded as the future to High Street banks after the banks’ collapse.

So how are we going to make sure that the same disasters don’t happen with credit unions given far more financial muscle? Well-meaning people are not always those with their eyes on the finances. So I’m with Simon Thompson,

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the chief executive, of the Chartered Banker Institute, in Edinburgh, that we need better training and qualifications for real bankers and financial managers who understand business and risk. Decent loans at reasonable prices from wellbehaved banks are the only way to beat the loan sharks.

>> And a Parting Shot

Some say that short-termism is to blame for the Royal Mail IPO sell-off not being a good deal for UK taxpayers.

It’s been a good deal for Goldman Sachs,UBS and the five other banks who have made £13 million in fees so far, with another £4.2 million at the discretion of the UK Government. Will they allow such windfalls in the future privatisation of RBS and TSB? Answers on a postcard.

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EVENTS

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BQ’s business events diary gives you lots of time to forward plan. If you wish to add your event to the list send it to editor@bq-scotland.co.uk and please put ‘BQ events page’ in the subject heading

January 2014 7 Chris Marr’s Marketing Surgery, Learning Everyday, Zest Café, 95 South Street, St. Andrews, KY16 9QW – 5:30 to 7pm – www.learning-everyday.co.uk – 01333 815033 9 Power Lunch Club with TBC. HSBC Bank, Hobart House, Hanover Street, Edinburgh, EH2 1EL. 12-2pm. Contact: info@powerlunchclub.co.uk 10 Networking Scotland, Networking The John Muir Way, Musselburgh – Cockenzie, Fisherow Harbour, Musselburgh, EH21 6DH. 1:30pm. 07932501022 14 Developing Your Organisation, with Animate, Glasgow Council For The Voluntary Sector, 11 Queens Crescent, Glasgow, G4 9AS. 9.30am-4.30pm. www.animateconsulting.org.uk 14 Building Business Acumen In HR , organised by Eden Scott, 26 St Andrew Square, Edinburgh, EH2 1A, 8-9.30am. Jamie.armstrong@edenscott.com 15 Power Lunch Club with Sir Brian Souter, chairman and founder of StageCoach Group.

HSBC Bank, 1st Floor, 141 Bothwell Street, Glasgow, G2 5HS. 12-2pm.

Contact:info@powerlunchclub.co.uk 15 Developing Your Organisation, with Animate, Glasgow Council For The Voluntary Sector, 11 Queen’s Crescent, Glasgow, G4 9AS. 9.30am to 4.30pm. www.animateconsulting.org.uk 16 Becoming the Expert: Content Marketing Boot Camp Edinburgh, with John W Hayes, Edinburgh Training And Conference Venue, 16 St Mary’s Street, Edinburgh, EH1 1SU. 9am-4pm. becomingtheexpert@gmail.com 21 So you think you have a commercial opportunity? with Bright Idea Scotland, 11 Mitchell Lane, Glasgow, G1 3NU. 10.45-12.45am. Advice@brightideascotland.com. 0141 2486516 22 The Best Of Dundee B2B Networking – Monthly Networking Meeting (January),

by Simon Knox Coaching. Henry’s Coffee House, 26 Seagate, Dundee, DD1 2EQ. 4-7pm. simonknox@knoxcoaching.co.uk – 07860 476358 22 E-Commerce Master Class 4 – Optimising user experience can radically improve your conversion rate to online sales, Scottish Enterprise Edinburgh, Apex House, 99 Haymarket Terrace, Edinburgh, EH12 5HD. 1.50-7.30pm. www.sdi.co.uk – 0800 9179534 22 Preparing to export intermediate workshop in Glasgow – Looking to develop your export and trade skills? – SDI Offices, Glasgow. 9am to 4pm. www.sdi.co.uk – 0800 9179534 23 Scotland food and drink network: Digital strategy workshop. Scottish Enterprise Edinburgh, Apex House, 99 Haymarket Terrace, Edinburgh, EH12 5HD. 9am-1pm. www.sdi.co.uk – 0800 9179534 22 So you think you can turn your idea into a business? Business Gateway Ayr, Forbes Drive, Ayr, KA8 9FG. 10:45-12:45pm – advice@brightideascotland.com. 0141 2486516 25 The Absolute Truth About Selling On Amazon: Sales Workshop, H2SO.org, Glasgow, 8.30am to 5pm. email Andrew@h2so.org for venue. 01743 272761

10 The Edinburgh Chamber Of Commerce Business Awards, Sheraton Grand Hotel And Spa, Edinburgh – 7pm-11.59pm - sian.downes@edinburghchamber.co.uk 0131 221 3194 12 So you think you have an idea? Workshop 1 - Organised by Bright Idea Scotland, The Creative Exchange, 29 Constitution Street, Leith, Edinburgh, EH6 7BS. 10.45-12.45am. advice@brightideascotland.com – 0141 2486516 18 So you think you can turn your idea into a business? Organised by Bright Idea, Scotland, 11 Mitchell Lane, Glasgow, G1 3NU. 10.45-12:45am. advice@brightideascotland.com – 0141 2486516 20 Power Lunch Club with Rob Woodward, Chief Executive of STV, 1st Floor, 141 Bothwell Street,Glasgow, G2 5HS. 12-2pm. Contact: info@powerlunchclub.co.uk 26 Copywriting master class, a Thousand Monkeys, The Signet Library, Edinburgh, EH1 1RF. 9:30am-4:30pm – hello@athousandmonkeys.co.uk. 01202 853660 26 So you think you have a commercial opportunity? Organised by Bright Idea Scotland, Business Gateway Stirling – STEP, John Player Building, Sterling Enterprise Park, Stirling, FK7 7RP – 10.45-12.45am. advice@brightideascotland.com – 0141 2486516 25 Preparing to export introductory, Helping your company get ready to export, Scottish Enterprise, Aberdeen, 41 Albyn Place, AB10 1YN. 9am-4pm. www.sdi.co.uk - 0800 9179534 26 E-Commerce Master Class 5: The international aspects of e-commerce. The Corinthian, 191 Ingram Street, Merchant City, Glasgow, G1 1DA. 1.50-5.30pm. www.sdi.co.uk 0800 9179534

March 2014 4 Developing Your Organisation – Organised by Animate – Glasgow Council For The Voluntary Sector, 11 Queens Crescent, Glasgow, G4 9AS. 9.30am to 4:30pm. mail@animateconsulting.org.uk – www.animateconsulting.org.uk 4 Excellent Customer Service Masterclass, A Thousand Monkeys, The Signet Library, Edinburgh, EH1 1RF. 9:30am-4.30pm. hello@athousandmonkeys.co.uk – 01202 853660 5 Edinburgh Pitching For Management At MBM Commercial – Organised by AngelNews – 125 Princes Street, Edinburgh, EH2 4AD. 4-7.30pm. modwenna@angelnews.co.uk – 01761 452248 6 Lanarkshire Business Show 2014, Events for Business, Ravenscraig Regional Sports Facility, O’Donnell Way, Motherwell, North Lanarkshire, ML1 2TZ. 9am-1pm. 01383 852931 – www.eventsforbusiness.co.uk 12 So you think you have a commercial opportunity? Workshop 2 – Organised by Bright Idea Scotland – The Creative Exchange, 29 Constitution Street, Leith, Edinburgh, EH6 7BS. 10.45-12:45pm. advice@brightideascotland.com – 0141 2486516

26 The Absolute Truth About Selling On Ebay: Sales Workshop, H2SO.org, Glasgow, 8.30am to 5pm. email Andrew@h2so.org for venue. 01743 272761

13 Make the most of digital to develop your international tourism business – The Lighthouse Glasgow, Mitchell Lane, 56 Mitchell Street, Glasgow, G1 3LX. 9.15am-1:30pm. information.TheLighthouse@glasgow.gov.uk – 0141 2765360

28 Telephone Skills And Confidence Workshop, organised By Touchstone Leads, Duddingston Golf Club, Duddingston Road West, Edinburgh, EH15 3QD. 9:30am-3:30pm.

Inquiries@touchstoneleads.co.uk – 01388 775293

18 Scottish Renewables Annual Conference, Exhibition And Dinner – two day event – EICC, Edinburgh – http://www.scottishrenewables.com/events/ac14/ - For information, visit: www.edinburghchamber.co.uk or call: 0131 221 2999

28 Scottish Renewables Offshore Wind And Supply Chain Conference. Exploring the development of an offshore wind project and key issues affecting the industry, AECC, Aberdeen – two day Event – For information, visit: www.edinburghchamber.co.uk or call: 0131 221 2999.

25 Unconventional Gas Aberdeen 2014 – two day event – AECC, Aberdeen www.unconventionalgasaberdeen.com – For information visit: www.agcc.co.uk or call: 01224 343900

28 Cons To Cobblers: James Timpson, organised by Howard League Scotland, Playfair Library, South Bridge, Edinburgh, EH8 9YL. 5:30 to 8:30pm. info@howardleaguescotland.org.uk – www.howardleaguescotland.org.uk

26 So you think you can turn your idea into a business? Business Gateway Stirling – STEP, John Player Building, Stirling Enterprise Park, Stirling, FK7 7RP – 10.45-12.45am. advice@brightideascotland.com. 0141 2486516

29 So you think you have an idea? Organised by Bright Idea Scotland, Business Gateway Stirling – STEP, John Player Building, Stirling Enterprise Park, Stirling, FK7 7RP. 10:45-12:45am. advice@brightideascotland.com. 0141 2486516

26 E-commerce Master Class 6: The International aspects of ecommerce – Skene House Rosemount, 96 Rosemount Viaduct, Aberdeen, AB25 1NX. 1.50-5.30pm. www.sdi.co.uk - 0800 917 9534

February 2014 5 East Africa oil and gas trade mission. 11-day trip organised by SDI for high-growth companies in Kenya, Mozambique, Tanzania. Contact: ian.ross@scotent.co.uk 5 Emerging Europe 2014: A strategic opportunity for Scottish companies, Radisson BLU Hotel Glasgow, 301 Argyle Street, Glasgow, G2 8DL – 9am-1.30pm. www.sdi.co.uk - 0800 9179534 6 Power Lunch Club with Charles Hammond, CEO at Forth Ports Limited. HSBC Bank, Hobart House,Hanover Street, Edinburgh, EH2 1EL. 12-2pm. Contact: info@powerlunchclub.co.uk

BUSINESS QUARTER | WINTER 13

The diary is updated daily online at www.bq-magazine.co.uk Please check with contacts beforehand that arrangements have not changed. Events organisers are also asked to notify us at the above email address of any changes or cancellations as soon as they are known.

82

Why your wealth manager should never stop

managing your portfolio.

The issue with investment opportunities is that they rarely stay opportunities for long.

Too often one blinks, and they’ve gone.

Which is why we at UBS believe in proactively managing your portfolio.

It means your client advisor will seek out new investment opportunities, based on the latest market developments.

And regularly review your portfolio, balancing and optimizing it, according to your risk profile.

But one thing remains constant throughout all of this.

Our commitment to meeting your financial goals.

And that’s something we’ll never stop doing.

Colin Aitken UBS Wealth Management Wemyss House Edinburgh EH3 6DH Tel: 0131 247 2921

The price and value of investments and income derived from them can go down as well as up. You may not get back the amount you originally invested. Past performance is not a reliable indicator of future results.

Authorised and regulated by Financial Market Supervisory Authority in Switzerland. In the United Kingdom, UBS AG is authorised by the Prudential Regulation Authority and is subject to regulation by the Financial Conduct Authority and limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request.

We will not rest www.ubs.com

© UBS 2013. All rights reserved.