BQ Scotland Winter 2016

Liquid gold

BUSINESS QUARTER

Paul Miller’s Eden Mill brewery and distillery goes global

Art of business

The Scottish Gallery’s Christina Jansen on 175 years of selling art

Incubating unicorns

BUSINESS QUARTER

Scotland: Winter 2016

Duncan Logan live on stage at the Start-up Summit

Celebrating and inspiring entrepreneurship £4.95 Business Quarter Magazine

Scotland: Winter 2016

Sister act

Food and drink trio Gillian, Nichola and Linsey Reith share their recipe for success

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ENTREPRENEUR INTERVIEWS

BUSINESS UPDATE

LIFESTYLE

EVENTS

Alexandra Rice, regional director for corporate and commercial banking at Santander, shares an insight into the world of corporate banking What’s it like to manage and lead within a corporate bank?

It’s the people I work alongside that make my job so fulfilling; most especially my clients and my team. I run a team of relationship directors (RDs) and relationship managers (RMs) that provides banking to the professional and financial services sector.

One of the great joys of working in my world is the volume of client interaction it enables. My team supports businesses that span from mid-sized enterprises right up to large corporates and partnerships where turnover is more than £1 billion.

Across that range, I’ve met some of the most inspiring and impressive individuals that I could ever hope to meet.

I’ve been doing it for many years but it is still as much of a privilege now as it was on my first ever client visit.

Another part of the job that is very fulfilling is managing the team. RDs and RMs must demonstrate a high level of technical skill. They must combine financial analysis with business acumen and strategic insight.

All of that must be wrapped into a personable individual who knows how to listen to a client, can understand their needs and then combine that with their technical expertise to create options. To complete the skill set, an RD needs to be able to do all that and distinguish themselves from their competition in a compelling and meaningful way.

That’s quite a tall ask for any one individual. Coaching and leading a team that must attain the highest standards in ideally all those areas make it a multi-faceted and highlyfulfilling job to have. I love it.

What are ethics and behaviour like within corporate banking?

In my experience, and across three banks, I have found most corporate bankers to be client-focussed, ethical, highlycapable individuals for whom doing the right thing for the client and the organisation, and achieving personal success, have always been inextricably linked.

Yet pre-2008, right across the banking industry, there were some individuals for whom the need to achieve shareholder and, in some cases, personal returns overtook all other considerations. Perhaps the most damning indictment of this action is that it took a worldwide banking crisis for some institutions to address this issue.

Perhaps the most seismic change that I’ve seen in the past ten years is the focus now placed from the top down on required behaviours. In Santander, we have adopted a framework of nine behaviours: speak up, truly listen, show respect, keep promises, give support, bring passion, talk straight, embrace change, and actively collaborate.

A set of required behaviours is not an end in itself; it must become part of the fabric of how we operate as an organisation. Our performance-rating process has shifted away from what was mostly a set of metrics based on capability to one that still requires that capability but set within the context of a far more holistic and balanced behavioural assessment.

How difficult is it to recruit women and people from different ethnic backgrounds into leadership positions?

Corporate banking naturally attracts a lot of highly-driven and capable people. They come from all countries, especially so in London, where it is very common to have several nationalities represented on any given team.

What continues to surprise me is just how hard it is to recruit a team representative of the UK business community. The most immediately-noticeable gap is an absence of women, especially at senior levels.

One of the things on my to-do list is to go to schools and universities and engage audiences of young women to tempt them into corporate banking. There is absolutely no reason why women should be discouraged from entering the field. The only thing I can think of that might be influencing decision making is perception. Perhaps this is holding back the numbers of non-white entrants as well?

Some people think you need to be a trained accountant to be successful. You must be numerate, but analysing financial statements is not as complex as it might first seem. It’s just a different language; once you have learned how to read it, interpreting what the numbers say becomes progressively easier with practice.

Santander has a brand promise that encapsulates that: everything we do must be “simple, personal, and fair”. Those three words provide an instant litmus test for pretty much everything we do. That is our commitment to our clients, and to all employees too. We encourage everyone to hold us all to that brand promise.

How do you nurture and develop people and retain them in an industry with high churn?

What are some of the challenges with performance management in a sales environment?

My ideal RD would possess outstanding technical capability, an exceptionally-high level of sophistication in their appreciation of client management skills, be an outstanding team player and have a proven and consistent ability to develop business within the top decile of the peer group performance spectrum.

They do exist, but they are not as common as they should be.

One of my top priorities is to ensure my team produces more of these individuals.

The best raw material to start with? Those individuals who are blessed with a high level of personal awareness and have learned how to amplify their strengths and find ways to shore up their capability in other areas. Once you find that, the rest is training and application.

That said, attracting the talented individuals and knowing how to train them is just the start. Organisational culture matters a lot. To be authentic in my commitment to develop my team and facilitate an environment where they can be successful, I have to know I’m in an organisation where “doing the right thing” really matters.

Perhaps the most difficult decisions I’ve had to make are when I’ve run teams in which the star performer can’t be a team player. If the rest of the team is just “OK”, it’s so tempting to keep that person front and centre rather than risk overall performance by reducing the amount of special treatment they invariably demand. I’ve found indulging “star treatment” is usually a bad idea in the long run. Over dependence on one person can completely skew the way the whole team functions in a negative way.

For me to feel happy in my role, I must lead and manage in line with my own code of ethics and principles. That does not allow me to make special exceptions for one individual to the extent that the others in the team feel like second-class citizens. Santander’s nine behaviours provide the cultural reinforcement I need to make the hard decisions. From experience, I have learned that playing the longer game and building the capability of the many, rather than focusing on the few, is always the most fulfilling road to high levels of client satisfaction and overall team success.

BUSINESS UPDATE bqlive.co.uk

EDITOR’S VIEW SCOTLAND ISSUE 26 Change appears to be the only constant in life. From Brexit to Trump, the electorate wants to back the outsider, it wants a break from the norm.

On both sides of the Atlantic, the narrative is about economic growth. Growth outside the European Union. Growth to eliminate America’s trade deficit.

If you want growth then you need entrepreneurs. It is entrepreneurs who will create businesses, it is entrepreneurs who will turn their start-ups into scale-ups, it is entrepreneurs who will offer the jobs that will lift people out of poverty.

In this winter issue of BQ Scotland, we share the stories of entrepreneurs who are growing their businesses in sectors throughout the economy, from manufacturing and retail to infrastructure and professional services.

Gillian, Nichola and Linsey Reith, the trio of siblings behind Three Sisters Bake, have one of the most inspiring stories to share. Their catering and café business is reporting solid growth, but is managing to do so while remaining true to its founding principle of producing all its food by hand. That artisan quality is also present at Paul Miller’s Eden Mill, Scotland’s first and – so far – only brewery and distillery on one site. As the University of St Andrews redevelops its Guardbridge complex, Miller is taking the opportunity to expand his business’s footprint.

Growth is also top of the agenda for Business Stream. The non-domestic supplier may be owned by public body Scottish Water, but chief executive Jo Dow is in no doubt about its commercial status and is using all her business acumen to lead its expansion into England.

From the water pipes in the street to the calmer environment of the office, Edward Bruce, chief executive at insurance broker Bruce Stevenson, has turned his business from generalist to specialist and has reaped the rewards.

Over our Business Lunch, journalist Karen Peattie catches up with David and John Alexander, who took a different approach to growth and merged their property management businesses. Meanwhile, Betsy Williamson, managing director at Core-Asset Consulting, examines how entrepreneurs in the financial services sector can grow their businesses through gender diversity.

Growth is needed at every stage of the journey and so we also highlight some of the routes available to finance that expansion. The Social Stock Exchange is opening a branch in Scotland, giving impact investors easier access to growing companies, while Virgin is joining the band of firms offering the UK Government’s start-up loans north of the Border.

And finally, in a change of pace, Christina Jansen welcomes BQ Scotland to The Scottish Gallery, Scotland’s oldest privately-owned art gallery, as it prepares to celebrate its 175th anniversary. Jansen can draw on her own experience and that of previous managing directors stretching back decades to grow her business.

Peter Ranscombe, editor, BQ Scotland

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CONTACT S BUSINESS QUARTER Bryan Hoare Managing director e: bryan@bqlive.co.uk @BQBryanH

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Business Quarter, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT. www.bqlive.co.uk. Business Quarter (BQ) is a leading national business brand recognised for celebrating and inspiring entrepreneurship. The multi-platform brand currently reaches entrepreneurs and senior business executives across Scotland, the North East and Cumbria, the North West, Yorkshire, the West Midlands and London and the South. BQ has established a UK wide regional approach to business engagement reaching a highly targeted audience of entrepreneurs and senior executives in high growth businesses both in-print, online and through branded events. All contents copyright © 2016 Business Quarter.

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 content marked ‘Profile’ and ‘Special Feature’ is paid for advertising. All information is correct at time of going to print, December 2016.

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CONTENTS

Winter 16 60

MOTORING Jonathan Payne is making some noise about the new Aston Martin DB11

34 EAST OF EDEN Eden Mill toasts overseas success

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WATER WORK S

Business Stream’s Jo Dow talks to BQ

64 44 BROTHERS IN ARMS

Business lunch with David and John Alexander

ONE INTO T WO GOES TWICE

Cracking the code at 21212

XYXTCRZXX bqlive.co.uk

Celebrating and inspir ing entrepreneurship

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FEATURES 18

SIS TER ACT Trio of siblings with a recipe for success

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GOING WITH THE FLOW Business Stream’s Joe Dow talks to BQ

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IT IS ROCKET SCIENCE Rocket Space’s Duncan Logan live on stage - and on unicorns

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GOING WITH THE GRAIN Eden Mill brewery and distillery is going down a treat - globally

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ART OF BUSINESS The Scottish Gallery is still going strong after 175 years

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ONE GOES INTO T WO T WICE Dining, sleeping and breakfasting at 21212

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GOING UP A GEAR Insurance broker Bruce Stevenson takes on cyclist Mark Beaumont as it goes for growth

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S TAR TURN DiCaprio highlights opportunities at the Scottish Business Awards

REGULARS 08

ON THE RECORD Branson offers a helping hand to fledgling businesses

10

BUSINESS UPDATE Round up of business news from around Scotland

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AS I SEE IT Betsy Williams explains the benefits of gender diversity in financial services

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BUSINESS LUNCH Lunch with two brothers who merged their property businesses

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COMMERCIAL PROPERT Y Who’s building what, where and when in Scotland

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CADENHEAD ON WINE Sampling a red and a white from Valhalla’s Goat in Glasgow

SPECIALFEATURE

International Trade. Focus on Scottish businesses trading globally

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ON THE RECORD www.bqlive.co.uk/bq-breakfast

Branson hails Scottish roots as he launches start-up loans Peter Ranscombe finds out about Virgin’s plans to not just offer finance for start-ups but also advice and mentoring to help them survive Sir Richard Branson’s Virgin Group has become the latest player to enter the start-up loans market in Scotland. His Virgin Startup (VSU) unit joins DSL Business Finance, the Prince’s Trust, Transmit Start Ups and X-Forces as the delivery partners for the Start Up Loans Company (SULC), which was set up by the UK Government in 2012. VSU has allocated £15m to 15,000 businesses in England during the past three years. As well as offering funding, the company provides business advice and mentoring to its start-ups. Personal loans for business purposes of up to £25,000 are on offer from SULC at a rate of interest of 6% a year.

Branson says: “I’m delighted the first Virgin StartUp Scottish businesses have now received funding. Scotland has always been a place close to my heart – my wife Joan is a proud Glaswegian and my parents are from Edinburgh.

“I know Scotland is a place where new businesses can thrive, which is why I hope more follow suit and the funding, mentoring and business advice on offer through Virgin StartUp for Scottish entrepreneurs will act as a springboard for new businesses for many years to come.”

The first two Scottish companies have taken out

loans of £25,000 each through VSU. Mohsin Muhammed from Fife is setting up confectionary subscription service lovesweets.com, while Aberdeenshire-based Gillian Poskit is using the cash for her Bin Bath cleaning service.

“There are many challenges in starting a business,” Muhammed says. “Building and maintaining an awesome team, creating a great product and getting your business exposure.

“Firstly, I chose VSU because it is the ultimate entrepreneurial brand. As well as its support, I was matched with business adviser, David Christie. He’s helped me with my cash flow forecasts and business plans – he was instrumental in helping me get my business plan approved. And it doesn’t stop there; I also got a business mentor for my first year, Jo Long.

She’s helping me with kick-starting the business.

I would like to pass on my sincere gratitude to the entire VSU team.”

Poskit adds: “I have always had an entrepreneurial spirit and have had numerous light-hearted, fleeting conversations with friends and family about what my ‘thing’ could be. And it turns out, it’s cleaning wheelie bins.

“It was by chance I was introduced to the VSU loans by David Christie, and on every level it fits with my values. I have a strong moral code – I

lead with the heart and do the right thing based on these morals and I want Bin Bath to remain true to these ethics and I feel Virgin is a company with similar values.”

VSU’s Scottish operations were launched on 1 November at Virgin Money’s offices in Edinburgh. Claire Oldfield, a former Sunday Times journalist and now managing director of communications and marketing agency Wardour, hosted a panel discussion between Stagecoach bus and train group co-founder Sir Brian Souter, former hedge fund manager and now Gabriel business angel Margaret Coughtrie, and Glasgow Tedx talk curator Gurjit Singh Lalli.

All three speakers highlighted the importance of entrepreneurs finding the right mentors and of taking advice about how to start and run their business. They also pointed to the importance of capturing early sales instead of relying on equity investments or grant funding.

The British Business Bank runs SULC on behalf of the Department for Business, Energy & Industrial Strategy (BEIS), previously the Department for Business, Innovation & Skills (BIS). In November 2015, the then Chancellor, George Osborne, recapitalised SULC with a further £108m through to 2020, on top of the £131m already invested in the loans provider. n

ON THE RECORD www.bqlive.co.uk/bq-breakfast

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Getting social Entrepreneurs could gain easier access to a new source of funding once the Social Stock Exchange opens a branch in Scotland, as Peter Ranscombe reports

Accessing finance can be a challenge for all entrepreneurs. No matter how innovative the idea or how long the entrepreneur’s track record, lenders are sometimes still reluctant to sign a cheque. One business that aims to help plug that gap in funding is the Social Stock Exchange. Launched in London by thethen Prime Minister, David Cameron, in June 2013, when the UK hosted the G8 summit, the exchange has grown from its 11 founding companies to around 40 members, which together have a combined value of £2bn.

Although there’s no single definition, a social enterprise is a business that aims to have a social or environmental impact. These aren’t all ‘knit-your-own-yoghurt’ fringe businesses either – according to UK Government statistics, there are around 70,000 social enterprises in Britain, which contribute a combined £24bn to the economy. They range in legal structures from familiar entities like sole traders and limited companies all the way through to the more exotic-sounding ‘community interest companies’ and ‘charitable incorporated organisations’.

Yet the 2015 State of Social Enterprise Survey found that 73% of social enterprises earn more than three-quarters of their income from trading, as opposed to grant funding or other sources of cash, showing these are clearly businesses and not charities.

About half of the members of the Social Stock

Exchange have equity listed on the platform, while the remainder are eyeing flotations.

Some members also choose to list bonds on the exchange.

Companies that are listed on the market include renewable power provider Good Energy and property group Places for People. The sole Scottish member to date is Glasgow-based ETHX Energy, which provides power from biomass plants for housing associations and local authorities, and which is considering listing either equity or a corporate bond to raise capital.

Tomás Carruthers, who was chief executive at Interactive Investor International between 2003 and 2013, was appointed as the Social Stock Exchange’s boss two years ago and has overseen an expansion of the business. Last year the exchange began to look at expanding throughout the UK by opening a series of offices, with a pilot launching on Merseyside as the Liverpool & Wirral Social Stock Exchange this June, followed by a branch in the South West of England.

The exchange is now moving into Scotland and has its eye on a base in Glasgow, from where a team of analysts and sales staff will be able to travel throughout Scotland. Sectors that are expected to be interested in the model include the North Sea oil and gas decommissioning industry, where there is a clear environmental as

well as financial impetus.

“There’s a rigorous process in place for companies that want to join the exchange,” explains Mike McCudden, Scotland director at the Social Stock Exchange. Only 50% of the companies that apply to join the exchange will be accepted because they’ve got to prove that they have a genuine social or environmental impact.

“We don’t just take what they say at face value – it’s not enough for them to just be a charity or an ethical business. They are vetted by an advisory panel, which is a two-stage process.

“It’s important that we are strict about which companies can join because we run a regulated exchange, which offers a secondary market for investors to buy and sell shares in our members.

Becoming a member should be like getting a stamp of approval.”

McCudden is proud the Social Stock Exchange is bringing back a ‘local’ element to stocks and shares in Scotland.

“Local impact investors will be able to invest in local businesses again, with the knowledge that they are delivering a social benefit too” he says. “It’s bringing back that old stock exchange model, but with the added benefit that companies will also be able to cast their nets wider because we also have access to the London markets and to institutional investors.”n

BUSINESS UPDATE Military wives in business creation project Women’s Enterprise Scotland (WES) is running its first business creation project for armed forces’ spouses and partners at Glencorse barracks in Penicuik, Midlothian.

Lynne Cadenhead, chair of WES, said: “Armed forces’ wives and partners have a huge amount to offer as a pool of talent for economic growth and to date, this pool has been untapped.

“These are people who typically have a wealth of talents, including resilience, flexibility and resourcefulness. Many do not pursue traditional employment opportunities due to the demands of a military focused lifestyle, yet their resilience and capacity to adapt can make them ideal entrepreneurs and innovators. Scotland needs to encourage more women into the enterprise sector. We want this project to serve as a pilot scheme in unlocking the talents of many women, with a view to rolling it out with the support of our partners and stakeholders throughout Scotland and the UK.” The ten-week course received £20,000 of funding from the Armed Forces Covenant and support from the Army Families Federation, the Army Welfare Service, Business Gateway, and the Hive information network for all members of the service community and Royal Bank of

Scotland.Economy secretary Keith Brown visited the project in October, along with Midlothian provost Joe Wallace.

Fusion Group adds two properties Alex Mckie, the entrepreneur behind the Fusion Group, has expanded his food, leisure and events business, by taking over the running of another two venues. Fusion, which already runs Old Churches House in Dunblane and The Red Brolly Inn and Logierait Lodges in Perthshire, has signed a 15-year lease on No 1 Golf Place, a bar in St Andrews owned by Iona Pub Partnerships, part of Stefan King’s Glasgow-based hospitality business G1 Group. McKie has renamed the property ‘The Golf Inn’ and is beefing up its food credentials, along with promoting its six bedrooms. Fusion has also taken over Chimes House, a five-bedroom Victorian townhouse opposite its Old Churches House hotel on Cathedral Square in Dunblane. Chimes House will continue to operate as a bed and breakfast.

McKie said: “I saw the ‘For Sale’ sign go up at Chimes House from my office window at Old Churches House. Within minutes I was outside chatting to the owner and putting in an offer, which I am glad to say was accepted. I knew that Chimes House would fit in perfectly with my other businesses.”

Cheers: Innis & Gunn has beaten its £1m target

Innis & Gunn smashes crowd funding target Beer brand Innis & Gunn has smashed through its £1 million fundraising target on crowdfunding platform Crowdcube. As BQ Scotland went to press, the Edinburgh-based company has raised £2.5m from just over 2,000 investors. The firm received 400 requests for its business plan, setting a record for the Crowdcube platform. The cash will be used to open a further four beer kitchen restaurants over the next 12 months. Innis & Gunn was valued at £49m before the crowdfunding campaign, having turned over £12.5m in 2015 and forecast revenues of £22m in 2017. The company, which was set up in 2003, said 70% of its turnover comes from exporting its beers to more than 25 countries. Its ‘Adventure Capital’ fundraising campaign comes just a year after its ‘beer bond’ raised £2.5m.

“The cash will be used to open a further four beer kitchen restaurants over the next 12 months. Innis & Gunn was valued at £49m”

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BUSINESS UPDATE www.bqlive.co.uk/bq-breakfast

Renewables developer optimistic for Scotland A renewable energy developer has hailed the continuing opportunities in the wind power market North of the Border, despite a series of subsidy cuts by the UK Government. CleanEarth Energy has been erecting 500kW wind turbines at Craigthornhill and Boghead. Managing director Dean Robson said: “The projects at Craigthornhill and Boghead are significant additions to our ongoing work in Scotland.

Though the market is facing some uncertainty, these projects are proof that, with proper planning and consideration, they remain not just viable but attractive investment opportunities for a variety of business and land owners. ”The company’s annual survey found that more than 88% of UK small businesses believe they have a duty to be environmentally responsible. Uncertainty created by changes to the UK Government’s energy policy means just 50% have taken measures to adopt renewable energy, and only one third are satisfied with the current direction of Government policy.

QUOTE OF THE QUARTER “It is a privilege to be invited by Scotgold to oversee the proceedings, and it will be equally fascinating to see the bids coming in. It is more than likely that the bulk of the gold will ultimately be bought by shrewd jewellers wanting to offer a truly Scottish product, but there are canny investors that might just want a bit of the very first pour for themselves.”

– Gareth Magee, a partner at accountancy firm Scott-Moncrieff, who auctioned gold on behalf of Scotgold Resources.

TOP TWEETS Congrats! Our Corporate Partners @BGF_team have passed £1bn in committed investments to entrepreneurial businesses www.bqlive.co.uk/2016/11/15/ growth-capital-provider-invests-1-billion ‒ @EntrepScot Our #Edinburgh Hatchery Tours are always a favourite! Sign up now to learn more about our programme @ESparkGlobal NEW BLOG: @OlgaUK talks worklife balance and MVPs on Women’s Entrepreneurship Day! http://bit. ly/2gjMbx8 #ChooseWOMEN #WED #GEW16 – @CovergeC Have you ever considered working with #academia to develop your #business?

We can help you get started @InterfaceOnline #AccelerateHER 2017 competition for women entrepreneurs @Investing_ Women goes live Monday – don’t miss the launch! – ‫@‏‬Investing_Women Congratulations to the Shortlist for the @BQLive Female Business Leader of the Year Award – @scotbizawards

Buck and Birch launches Aelder elixir A drink that was created for a pop-up dining experience has proved so popular that its makers have put it into full production. Aelder, an elixir made from foraged elderberries and pronounced ‘elder’, is the brainchild of Rupert Waites, head chef and chief forager at Edinburgh-based pop-up dining brand The Buck and Birch, and his creative partner, Thomas Chisholm. The drink debuted during the pair’s first pop-up dining experience back in 2012 and has become so popular that it is now on sale at several bottle shops in Edinburgh and the Lothians and online from Royal Mile Whiskies. Waites said: “Elderberries are one of the most neglected native fruits, but they are versatile and delicious. We found they complemented our style of cooking beautifully and were particularly well suited to our game dishes. We had a period of experimentation and decided to take the berries off the plate and into a glass and Aelder was born.”

It’s BAFTA time. Winner winner chicken dinner :-)) @padware @4JStudios – @chrisvdk Time for another reunion guys? @LlewelynBowen @ReallyLinda @ handyandykane @BuckinghamofUK needs a makeover #buckpalace #changingrooms – @Carolsmillie1 Winner of Food & Drink Business Growth: @Fishboxuk #HIFAD2016 – @hifooddrink

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PROFILE Scott-Moncrieff

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HMRC revolution is driving business into the cloud Anna Cathro, Assistant Manager, Scott-Moncrieff business advisers and accountants HMRC’s latest initiative, Making Tax Digital, is set to transform the current tax system by 2020 – but in preparation, many smart businesses are already taking their business into the cloud.

‘MTD’ will require all businesses, whether incorporated or not, to be using some sort of digital package. Being proactive now by switching from paper or excel to a package such as Xero, FreeAgent or QuickBooks Online, will help you be ready when the change becomes obligatory.

To be more up-to-date, HMRC plans for all unincorporated businesses to change from filing one annual tax return to filing quarterly returns.

These quarterly returns will need to be submitted directly from accounting software to HMRC, which means records need to be kept continually up-to-date and accurate. The idea of digital accounting, however, does not simply mean replacing paper filing with an excel spreadsheet. In the future, HMRC will only accept records that are kept on accounting packages compatible with their online system.

Whilst it will still be the responsibility of a business to submit this information to HMRC, nominated advisers can also

access online accounting systems to assist, and provide reassurance that all the figures are correct.

By using cloud software this is made possible in real time. Businesses switching to online accounting now will have the added advantage of being familiar with the system when the compulsory change

a client meeting (perhaps by reading your emails, planner, or via geolocation) it will provide you with a full financial progress report on that client. Exciting times ahead.

For those packages that are already linked to HMRC, when the change to digital filing is introduced,

“Businesses switching to online accounting now will have the added advantage of being familiar with the system when the compulsory change comes in.” comes in. And, in small businesses where financial responsibilities are often taken on by someone integral to business output, cloud packages can enhance productivity. User-friendly packages, like Xero, are fairly straightforward. With the use of online bank feeds, they will do all the usual invoicing of tasks, tracking incoming and outgoing funds and recording expenses, but they will also be compatible with HMRC’s systems and, via direct link, can accurately report on the period required. With clear graphics and adaptable dashboards, they are also a great way to achieve an at-a-glance understanding of what is going on in your business, and countless add-ons personalise the experience. Some packages are even starting to learn your narrative and habits as you go along, prompting you on recurring payments, for example. Accessible via any device, users can complete their books or issue (and chase) an invoice on the go. This ‘little, but often’ capability, is a real bonus to directors that need to keep on top of their finances.

Of course, the future doesn’t stop there. Cloud accounting providers are working on ways to make the software even more intuitive. For example, if the software detects that you are on your way to

the system will already be fully integrated with their online portal, allowing for easy submission and confirmation that the information has been transferred accurately. If you’re thinking of taking the plunge with cloud accounting, there are a few things you might want to consider – check that the package is user-friendly (aimed at the nonaccountant), uses online bank feeds, is already linked to HMRC and that it provides access to your advisers too. If the cloud accounting package has these features, it should be good to go, and you can look forward to waving those mountains of paper or eye-watering excel spreadsheets goodbye.

E: anna.cathro@scott-moncrieff.com T: 0131 473 3500 www.scott-moncrieff.com

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PROFILE Data.Space 2017

Satellite Data is rapidly changing the way we live and interact in our environment Leading industry figures from around the world will come together at Data.Space 2017 to deliver insights into the latest innovative products and services derived from space technologies.

Satellites, and more specifically the data that is being collected from them, are becoming an increasingly important means of observation globally, not only offering solutions for the betterment of life on earth, but also huge new business opportunities across many sectors including energy, sustainable cities, smart grid, agriculture, marine, life sciences and transport. The Scottish Centre of Excellence in Satellite Applications, SoXSA, is engaging with organisations across these sectors to explore how satellite derived data can challenge conventional ideas and develop new innovative concepts, techniques and products in response to user needs.

Since its establishment, SoXSA has been building exciting new partnerships and accelerating the growth of satellite applications, bringing together company needs and challenges with expertise from the innovation landscape.

At its inaugural international Data.Space2017 Conference being held on the 1st & 2nd of February at the Technology and Innovation Centre (TIC) in Glasgow, SoXSA will pull together data and service providers with users and markets, as well as governments and their agencies, to provide a unique networking opportunity which will enable

the coming together of needs and challenges with expertise and most importantly the identification and exploration of the opportunities that exist for businesses today.

With a focus on the exploitation of new data sets, the packed agenda will include world class speakers including Government ministers, the Director Generals of the European Marine Safety Agency and the UK Space Agency, as well as CEOs & founders of Spire, Planet, Descartes Labs, Clyde Space, Astra and Telespazio VEGA, a host of great small businesses such as Astrosat, Rezatec, and others, as well as non-space companies and data users such as PTV Group, Ordnance Survey and PEW fisheries, as well as VC funders from the UK and USA. The Civic Reception and Gala Dinner on the evening of the 1st February will offer a chance to meet and network informally with some of the leading minds in this field, whilst also touching base with peers and others who show an interest in data and its potential new applications.

BOOK NOW Places at Data.Space2017 can be booked via the website at a cost of just ÂŁ295+VAT.

“Since its establishment, SoXSA has been building exciting new partnerships and accelerating the growth of satellite applications, bringing together company needs and challenges with expertise from the innovation landscape.� - Dr Malcolm Macdonald, Director of Scottish Centre of Excellence in Satellite Applications

Just some of examples of the opportunities include: Transport: Autonomous vehicles, Remote positioning.

Energy: Pipeline monitoring, Offshore platforms maintenance.

Agriculture: Supply-chain management, Monitoring animal health, Crop and yield monitoring.

Marine: Tracking shipping vessels and early detection systems, Illegal fishing monitoring, Marine life and health monitoring.

Environment: Monitoring coastal erosion, Mapping green space, Illegal logging monitoring and forestry.

Sustainable Cities: Carbon and air pollution monitoring, Vehicle tracking and traffic management.

@dataspacexyz

At Data.Space 2017 you will hear from companies at the leading edge of the exploitation of new data.

Data.Space 2017 offers huge opportunities for companies within the energy, sustainable cities, smart grid, agriculture, marine, life sciences and transport sectors to see how innovation, big data and partnerships can increase your competitive edge.

Paul Wheelhouse MSP, Minister for Business, Innovation & Energy

Markuu Mylly Director General of the European Maritime Safety Agency

Mark Johnson CEO, Descartes Labs

Robbie Shingler CEO, Planet

Headline Sponsor:

Book Now: www.dataspace.xyz Partners:

Peter Platzer CEO, Spire

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AS I SEE IT bqlive.co.uk

The gender agenda Betsy Williamson, managing director at Core-Asset Consulting, examines how gender diversity can help entrepreneurs in the financial services sector to grow their businesses It is no bold move to predict that, in the coming years, a major theme for Scottish financial services companies – both large and small – will be one of globalisation, or at least further internationalisation. But perhaps the most important challenge will be more societal and cultural than economic and financial: namely, increasing gender diversity.

And it is here, on the issue of gender diversity, that financial services entrepreneurs can steal a march on their more-established rivals, especially if they’re prepared to embrace a holistic approach to talent management. First let me set out the advantages that gender diversity brings to any company, whether large or small: • better corporate governance; • different perspective and emotional intelligence level; • workforce that better reflects your client base; • access to a broader recruitment pool;

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greater innovation and more creative problem solving; • more balanced attitude towards risk; • and modern and more reflective brand.

Perhaps most fundamentally, gender diversity can boost a company’s profitability. This ‘economic argument’ has been all but won in recent years. For example, a McKinsey report published in 2012 found that companies with the best financial performance had the highest number of women in top management.

Despite clear evidence of the commercial and cultural advantages of gender diversity, financial services companies across the globe are still failing to capitalise. Data in 2013 from financial institutions across 20 global markets highlighted that, despite women comprising 60% of all employees, only 25% progressed to middle management positions and only 19% progressed to senior level leadership roles.

Board and chief executive representation is even

AS I SEE IT bqlive.co.uk

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“There is little doubt there is a problem when it comes to the senior representation of women within financial services”

more of a concern, with only 14% of women at board level and a meagre 2% serving as chief executives. And although there is a poverty of statistics at a Scottish level on gender diversity, the anecdotal evidence very much reflects the global picture.

Clearly there is a dramatic fall-off midway through the careers of many women. As a result, firms are losing valuable talent from their business. This loss, naturally, is felt even more acutely within smaller business and start-ups.

There is little doubt there is a problem when it comes to the senior representation of women within financial services. But what is the solution? And how can financial services entrepreneurs benefit the most?

In March 2016, the Treasury and Virgin Money published the findings of a review entitled ‘Empowering Productivity: Harnessing the Talents of Women in Financial Services’.

It examined many of the cultural and organisational blockages that prevent most women from advancing beyond mid-level roles or force some to leave the industry entirely. It also listed a series of initiatives to help.

For many large and established financial services companies, implementing these recommendations will be a long and challenging process. In particular, overcoming the unconscious bias that evidently exists may take several years, even generations.

But if you are an entrepreneur who is considering launching a business, or is overseeing a small but rapidly-growing company, you are at a distinct advantage. You have the opportunity to build a gender diverse business from the outset, or certainly quickly rebalance your workforce to enjoy the commercial benefits

it brings. But you should not simply focus on retaining and developing female talent in order to create sustainable gender diversity. You should also put your efforts behind recruiting women internationally.

As a recruitment company specialising in the Scottish financial sector, we are often faced with the harsh reality of a dearth of senior female talent. Faced with this dilemma, hiring organisations – and the recruiters which partner them – have two options.

The first is to introduce quotas either part way through or at the end of the hiring process.

The second is to increase the number of suitable candidates. But if you don’t wish to compromise on the quality of your hires – a criticism commonly made of quota systems – arguably the only feasible approach is to increase the catchment area from which you recruit. However, competing for talent on a global stage, coping with the administrative burden of visas and permits, finding a suitable external partner, and developing and managing an international recruitment process can all seem daunting tasks. Most crucially for small businesses or start-ups, what type of recruitment partner should you choose? Unfortunately, Scottish-based organisations have often been badly served by some ‘global’ recruiters based either in London or overseas, which have often failed to grasp the specifics of the initial brief and not fully understood the organisational and cultural nuances of Scotland’s financial institutions.

On the other hand, the myth still persists that Scottish-based recruiters have knowledge only of the local market. However, home-grown consultancies with extensive vertical and

horizontal market expertise, as well as a strong track record of attracting high-calibre applicants from overseas, can be best-placed to support your company’s talent management objectives.

Done well, the commercial advantages of recruiting talent internationally can be huge. In addition to increasing gender diversity, building a varied workforce in terms of age, race and ethnicity, education, culture, religion and sexuality provides many benefits: • Increases the collective skills, experience and talent of your company; • Breeds creativity and innovation; • Reflects breadth and depth of your organisation; • Better mirrors your client base (90% of financial services companies have a base outside Scotland); • Gives you access to a larger talent pool; • And helps build a modern brand.

For financial services entrepreneurs aiming to build a gender diverse workforce fit for the 21st century, you need to embrace a holistic approach. Recruitment, retention and development need to be given equal weighting within your business.

But you are in a strong position. New entrants into the financial services industry have the clear advantage of working from a blank canvas, not hamstrung by outdated attitudes, archaic practices and labyrinthine bureaucracy.

As an entrepreneur, you can play a leading role in creating modern and progressive working environments. In doing so, you will capitalise on the opportunities true diversity brings. n Betsy Williamson, is managing director at Core-Asset Consulting.

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ENTREPRENEURS www.bqlive.co.uk

Recipe for success Growth is on the menu for Gillian, Nichola and Linsey Reith, the trio of siblings behind café and catering business Three Sisters Bake, as Peter Ranscombe finds out It’s been a year of profound change. Britain voted for Brexit. Theresa May became Prime Minister.

And Donald Trump trumped Hilary Clinton to become President of the United States. Yet perhaps the most profound change of all came in the autumn, when the BBC lost The Great British Bake-off to Channel 4. With presenters Mel and Sue and judge Mary Berry deciding not to make the switch, the news sent shockwaves through the baking community.

When they gathered at Killearn in Stirlingshire for their photo-shoot for BQ Scotland magazine, it was the first chance that Gillian, Nichola and Linsey Reith – the trio of siblings behind Three Sisters Bake – had to discuss the Bake-off controversy. But these aren’t three ordinary bakers.

They opened their first café at Quarriers Village near Bridge of Weir in Renfrewshire in 2011 and

added a second outlet at Killearn village hall in 2014. Turnover for their cafés and catering business has grown from £600,000 to £800,000 over the past year and its headcount peaked at around 50 staff over the summer – it’s a world away from 12 contestants standing in a tent with a pair of comediennes shouting “Bake” at them.

After school and university, each of the sisters had begun climbing the career ladder, with Gillian working in public relations (PR), Nichola in the pharmaceuticals industry and Linsey in recruitment. One by one, they gave up their jobs and returned to the hospitality industry, in which each of them had worked at different stages during school, university and between jobs.

“Since we were at university, we’d made noises about working together and potentially something to do with food and eventually baking,” explains

ENTREPRENEUR www.bqlive.co.uk

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ENTREPRENEURS www.bqlive.co.uk

“We all got on very well – not as little kids, but as teenagers – when most other siblings were tearing each other’s hair out, we quite liked each other and all worked together in jobs”

Linsey, 32. “It felt quite natural rather than planned – Nichola was working as a pastry chef, Gillian was managing front-of-house for restaurants and I was working as a chef – so it made sense to combine those forces and come together in a café environment.”

Sometimes inspiration can strike like a bolt out of the blue and trigger that eureka moment, but other times it’s the slow drip, drip, drip of ideas that leads to the decision to start a business. For the Reiths, the journey was more evolution than revolution.

Nichola, 35, takes up the story: “I don’t remember there being one particular moment when we suddenly went ‘This is what we want to do’. It’s been something that’s developed from such a tiny seed of an idea and that we’ve talked about for so long that I don’t think any of us could pinpoint a certain moment.

“We all got on very well – not as little kids, but as teenagers – when most other siblings were

tearing each other’s hair out, we quite liked each other and all worked together in jobs. I don’t think all three of us worked together at the same time in a job but we worked together in combinations – me and Linsey worked together in a pub when we were both finishing school, and then Gill and I worked together in a sandwich bar in America.

“It just grew from something that was very much just a pipedream – like saying ‘Oh, wouldn’t it be nice to have a house in the Bahamas?’ – to gradually over the years being something that we talked about more and more and more and went from being a wish to asking ‘OK, how are we going to make this happen?’.”

“We all spent a lot of time travelling during university and after graduating and all spent time in different parts of the world, each of which had unique and very interesting food influences,” adds Gillian, 37. “When Nichola and I both lived and worked in Australia, we

were both hugely inspired by the café culture over there and the brunch culture.

“We had all started our working lives in a coffee shop down the road from where we grew up in Bridge of Weir and the cappuccino that was served in there was a real 1980s pile of froth – so going to Australia and seeing flat-whites for the first time was an eye-opener. I got a job in a coffee shop and got fired after half a shift because my Scottish coffee skills were so appalling in comparison.

“This was 10 to 15 years ago, so things have definitely improved in Scotland since then.

The travelling we did allowed us to see different parts of the world and how it could be done.

We really wanted to bring that back to Glasgow.”

All three sisters were living in Glasgow’s West End at the time and began scouring the streets for a suitable location for their first venture.

“We looked at Finnieston before it was cool,”

ENTREPRENEURS www.bqlive.co.uk

laughs Nichola. “If we’d ended up there then we would have been trend setters,” chips in Gillian with a grin.

But they kept coming up against the same problem – whenever they found premises with the class-three planning designation they needed, the landlord wasn’t prepared to take a chance on a start-up business. Their Dad, Harry, a surveyor, suggested they should look at the former restaurant in Quarriers Village, which had recently closed.

Quarriers is a social care charity founded in Glasgow in the 1870s. Its village near Bridge of Weir was opened as an orphanage and cared for more than 30,000 children over the course of a century.

“Dad is the sensible mind in the family and we trust his judgement so much that we went to take a look,” says Linsey. “It was so much bigger than anything we were seeing in Glasgow for the same money. Instead of being one of the hip cafes in the West End we started to think about becoming a destination café that people would want to travel to from the city for a day trip.

“The scenery is amazing so people would want to make a day of it and have lunch and relax without the hustle and bustle of the city. We

came around to that way of thinking and had our hearts set on Quarriers Village.”

The café was an instant hit – but proved to be a lot of hard work. The sisters were working 100hour weeks to keep up with demand and, with only two other part-time members of staff, their Mum was drafted in as a ‘helper’ too.

“One of the biggest challenges was trying to start with an absolute shoestring budget,” remembers Gillian. “Our kitchen was fitted with domestic cooking equipment; we had an Ikea induction hob, which didn’t work at all in a commercial setting.”

Despite the hard work, the siblings stuck to their founding principles of using local produce and making all their food by hand, as opposed to buying-in ready-made stock. Linked with their talent for marketing their business through social media, Three Sisters Bake flourished.

As well as running the café, the business branched out into catering for weddings. After the sisters provided the feast for nuptials in Killearn in 2013, the village hall committee invited them to take over the running of its café and to become the in-house caterer for its venue.

“The offer came in about a week after a

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directors meeting at which we’d agreed not to take on any new projects for the next year,” laughs Nicola. “We’d just finished running our food truck at the Commonwealth Games in Glasgow and our first cookbook had just been published.

“We’d wanted to have an events space like this, but we thought it would be in five or even ten years’ time. But we all realised that this isn’t the kind of opportunity that comes around that often so we went for it.”

“It’s such a nice community, really similar to our one in Renfrewshire,” says Linsey. “It’s about the same distance from Glasgow.”

“We have another one in the pipeline – but it’s top secret at the moment,” adds Gillian mischievously.

Nichola points out: “Having three directors, we’ve always known that we can’t just have one café – the business was always going to be bigger than that. The business has grown to a point where it’s a nice comfortable size and so what we can do now is be choosy about what we do.”

Also in the pipeline is a central kitchen, from which the growing chain of cafés can be supplied with food. Gillian says it is “very likely”

ENTREPRENEURS www.bqlive.co.uk

to be in either Inverclyde or Renfrewshire.

“At the moment, all of our baking and savoury prep is done at the cafes,” adds Nichola.

“Without losing any of the artisan quality to it and still producing everything by hand, we want to do it in a centralised place. We can then continue to have the best quality, but in a number of places.

“If we continued to open cafés and had a separate team in each place making the cakes and savouries then the worry would be that standards might slip. But if it’s centralised then it means we can keep control over processes.”

The Scottish Manufacturing Advisory Service (SMAS) and Business Gateway have been giving Three Sisters Bake advice on scaling-up and even arranged for the siblings to visit Finsbury Foods factories.

“Granny used to make tablet and millionaire’s shortbread and her tablet was legendary,” explains Nichola. “People would drive there to buy her tablet. Any money that she made from those wee things was her own to keep.

Nowadays it doesn’t sound like much, but 50 or 60 years ago the fact that she wanted to find a way of making her own portion of money was quite a big thing.

“Granny was very into baking in general and our Mum was a home economics teacher. I don’t think we realised when we were growing up that it was unusual to have a Mum who didn’t buy biscuits and cakes but who would make them herself. Every meal we ate was cooked from scratch. We thought that was normal. There was no Mr Kipling or Dolmio allowed in our house,” giggles Gillian.

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of the business too. Our Mum works with us on the craft boutiques – she makes a lot of the baby gifts and products.”

Linsey adds: “We want to have our own-brand deli produce as well and develop our own lines of packaged produce that we can sell. A couple of years ago, I went and studied ice cream making for a week at the University of Reading and since then we’ve always wanted space to have our own ice cream making plant. It would be nice for people to be able to come and see ice cream being made from start to finish.

“We have these notions and it would be amazing to have the space and time and money to let the public come and share all of that with us.”

Sitting with the sisters in the light and airy café at Killearn, it’s clear they all get along really well

“Granny was very into baking in general and our Mum was a home economics teacher. I don’t think we realised when we were growing up that it was unusual to have a Mum who didn’t buy biscuits and cakes but who would make them herself” “We were like three little kids in a chocolate factory,” smiles Nichola. “Even though we’re unlikely to ever grow to that scale, there were plenty of lessons we learned that we could use in our own business.”

The sisters have become the poster girls for Business Gateway – literally. Having taken advice from the service since day one, they were invited to star in a television commercial and accompanying print advertising campaign.

“The TV advert was an amazing opportunity,” nods Gillian. “It’s nice sometimes to be asked to do these things and it does feel a bit glamorous and exciting for a day and you get to escape the day-to-day fire-fighting.

“The feeling of being asked is hugely exciting and flattering and flabbergasting because in many ways we still feel like we’re those three girls who started the business five years ago, wet behind the ears and naïve, with no idea of what we were doing apart from having this burning desire to create amazing food.”

When it came to setting up their own business, the siblings had some inspiration from other members of their family. Their Granny and Grandpa ran a newsagent and sweet shop at Kirriemuir in Angus.

Following the recession in the early 1990s, their Dad and his colleagues also set up their own surveying firm, providing another role model for his daughters as they began their business.

Looking to the future, a second cookbook is being written and, over the summer, the sisters became brand ambassadors for Graham’s, the family-run dairy based in Bridge of Allan in Stirlingshire. The siblings have created 26 recipes using Graham’s products and have starred in a series of videos for its website and social media channels. We still have a vision of what we want – we called it ‘Three Sisters Bake World’ as a joke,” laughs Gillian. “The big all-singing all-dancing version of what we do. That was the vision that we started with when we opened our first café and it’s still what we aim towards.

“Now it’s about trying to work out how to get the capital funding and the location. We realise the realities of achieving that are much more difficult – the blinkers are off and we’re not a naïve start-up anymore.”

“We want a bigger and better version of what we do at each of our cafes – so bigger café space, with more space to display our food so people can see what they’re ordering,” explains Nichola. “More space for the retail and craft side

together, with the laughter and jokes flowing as they recount the adventures they’ve had along the way. But has working together as colleagues changed their relationship as sisters?

“We’ve just come back from a family holiday on Arran and our Dad put a ban on us talking about work,” smiles Gillian. “It forces you back into ‘sister’ mode, so you don’t lapse back into work chat.”

“Which is almost impossible when you see each other every day and the place you see each other is work,” adds Linsey.

Nichola says: “It’s forced us to have a more honest relationship with each other – not that we didn’t have that before. We had a friendship before – which we still have now – but we’ve realised brutal honesty is what you need in order to have a good working relationship.”

“We’re more up-front with each other,” nods Gillian. “We tend to agree on the bigger picture and the overall direction of the business, like taking on an industrial space and building ‘Three Sisters Bake World’. The disagreements tend to be more about the small things, like changing the layout of a café, because we all have passionate views about where the sink should go.” n

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BUSINESS FOCUS Special Feature

Why training needs a fuller and richer conversation

The numbers for both businesses are impressive enough on their own: Intraining and Rathbone Training exist within NCG, which has four colleges, an annual turnover of £178 million and 3,000 staff across 61 locations. That huge scale enables them to work with more than 133,000 learners and 20,000 businesses each year.

The influence that gives them in so many regions is magnified by the structure of the organisation.

With Rathbone Training being a charity and Intraining a not-for-profit business, everything they make is invested back for the benefit of customers and communities alike – a central

As the Performance Director of two of the country’s largest training providers, Rathbone Training and Intraining, Gina Steele tells BQ Editor Mike Hughes about the impact they have on their communities and the plans for growth core of the way both businesses are run.

“We made a decision last year to bring them together so that we can give the best value for what is essentially public money,” she explained.

“It meant we were able to more easily share

key services and best practice, and from a business perspective our employer-facing staff and customer-facing staff would have a single conversation about a range of products and, probably more importantly, can have a single

BUSINESS FOCUS Special Feature

‘listen’ to what our employers need.”

The logistics of bringing together two key players in the training sector are daunting, but the Vision 2021 programme being led

by Rathbone Training and Intraining’s Senior Leadership Team will make sure the passion colleagues have for helping people get jobs remains undiminished.

“Both organisations are centred on employability and increasing the offer to employers who will have a wider range of solutions because we are sharing the benefits of each other’s markets,” she told BQ.“But while we know we are a hugely influential operator on a large scale, for us it all comes down to the passion we have for simply helping people find work – for us it is all about levels of employability.

“I was away with over 50 of our young people at our youth conference recently and they were telling me how much they understand that what we can do together will give them sustainability and purpose and enable them to have that flat or that family they have always wanted.

“They are realistic, just as we are, about the area where they might find that employability and what first steps they will have to take to get there. We see our role as getting people to that first job and accepting that some people might need two years to get there, while others might make it in eight weeks. We will help them reach the skills level and personal development level to achieve whatever they are capable of.

“We know from years of experience that people don’t move forwards on a nice neat linear path when it comes to fundamentally life-changing experiences, so we need to deliver highly-personalised journeys and have to have the staff in place who can handle such a wide range of sectors and types of people. It can’t be in a typical classroom environment, it has to be done in partnership with employers to give an experience of the workplace.”

Fundamentally, Rathbone Training’s space is working with young people around 16-24 years old who have not, so far, successfully transitioned into employment because of predominantly socio-economic circumstances. It also delivers apprenticeships in some key areas like youth work and child care and in areas like volunteering, because as a charity it understands that audience. Intraining delivers apprenticeships to adults aged from 19 onwards in areas such as business management, business and health

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“Whatever we do, we will always keep employability for jobs as our focus and the key to the trusted collaborations we have with employers and the community – people will always be at the heart of our business”

and social care and works closely with adults at JobCentres to deliver the Government’s work programme.

“That is the framework in which we operate and it includes regular Ofsted inspections but within that there has to be uniqueness to what we can offer for individual people,” said Gina.

It is important for us and the people we work with that we are externally tested on that information, advice and guidance and both our organisations have also been through the industry’s Matrix Standard programme to make sure we deliver the very best options to as many people as we can.

“The sectors we work with are also hugely varied and the range of job opportunities within them is equally wide-ranging. This means that there are chances of progress for so many people, but also means our own intimate knowledge of those sectors and the regional situation covering them in each of our 61 locations needs to be impeccable – and we work very hard to make sure that is the case.

“We work in a very competitive training market, but I believe we offer a wider range of solutions than many other organisations which enables us to have a fuller and richer conversation. There are skills specialists out there, and employability specialists and those who work with adults and those who work with young people, but we cover all those areas and have a really big kit-bag that we can delve into to find the right answers.”

Despite its scale, there is a clarity about the two organisations that will be the envy of many smaller competitors. Rathbone Training and Intraining are about unlocking potential through learning and passing on strong values to as many people as possible. That work can start with a single phone call, or via the website or even via its Facebook or Instagram accounts.

But no matter how successful, no training organisation can ever sit back and think they have the job covered – the work changes all the time and issues like the Apprenticeship Levy

underline that.

Gina said: “We are confident and realistic enough about its implications to be in a strong position to offer guidance to our customers and clients, so I see it as an opportunity for them and for us rather than a negative – and one that only affects two per cent of employers.

“The other 98 per cent are the SMEs that Rathbone Training works with while Intraining works more with levy-payers, so we have a full picture already forming within our own work.

“We are positive in terms of engagement and working with new and existing customers to deliver what they need as the landscape around them changes – and if our two organisations can’t deliver exactly what they want then we have the experience and the contacts to help them find someone who can. That is a privileged position and we have worked hard to be confident enough to offer that level of service.”

For Gina, not every conversation needs to lead to a transaction – as long as something happens that is of benefit to the customer, she and her colleagues will take pride in acting as a conduit to help make it happen.

For the future, the Vision 2021 programme will encourage a ‘past, present, future’ dialogue about the unique values of the organisation and how they can take them forward and develop their offering.

“Whatever we do,” said Gina, “we will always keep employability for jobs as our focus and the key to the trusted collaborations we have with employers and the community – people will always be at the heart of our business.”

With so much experience across so many sectors and regions Intraining and Rathbone Training are already a trusted driving force in the training sector, influencing and directing policies and strategies that are changing the way young people are trained and apprenticeships delivered. It is a challenging job with a set of responsibilities that can literally be life-changing for its own staff as well as the people it works with. n

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INTERVIEW bqlive.co.uk

“When I joined this business, I never thought I’d become an expert in waste water treatment processes for turkey farmers”

INTERVIEW bqlive.co.uk

ke, a t s i e no m pany, k a m m t, er bu ly-held co t a W ottish ny private be c S y d a or bo s run like er Ranscom t c e s ublic Stream i tells Pet p y b ned Business e Jo Dow w o e tiv ay yb It ma ry other w hief execu as c in eve

. . . r e t a w r o O History seems to have a habit of repeating itself for Jo Dow. Back in 1998, she joined what was then Scottish Hydro-Electric on the eve of its merger with Southern Electric, which came as the industry stood on the cusp of deregulation.

Four years later, she moved to Scottish Water, the newlycreated public sector agency formed from the merger of the previous three regional water boards, putting her in one of the hot seats when Scotland became the world’s first deregulated water market in 2008.

Fast-forward to 2016 and the chief executive of Business Stream is overseeing the acquisition of Southern Water’s non-domestic arm and is preparing for 1 April, 2017, when the English commercial water market is due to be opened to competition.

“There’s a theme building here,” smiles Dow, 42, who grew up on Shetland and still retains a soft island lilt to her voice. “It does feel a bit like I’ve been here before.”

Dow speaks with great enthusiasm – and perhaps even a bit of affection – for Business Stream, but perhaps that’s not surprising given her career history. She was part of a fourperson team that was responsible for creating the organisation in 2007 in the run-up to deregulation and she was the first employee on its payroll, rising through the ranks from financial controller to finance director and then chief executive in October 2014.

“I wanted to become an accountant because I was fascinated

by numbers, which sounds incredibly sad and boring,” Dow laughs. “When I joined this business, I never thought I’d become an expert in waste water treatment processes for turkey farmers, but I’m definitely there now – we have some interesting conversations about treating blood effluent and I think ‘This is not what I signed up for’,” she jokes.

So, how did an accountant become an expert in turkey effluent? Instead of following the well-trodden path of going through university and then completing her ‘articles’ or professional training, Dow opted for the direct-entry route, joining accountancy firm Turnbull Kemp & Co in Perth at the age of 17 and qualifying as a chartered certified accountant when she was still just 21.

From Turnbull Kemp – which was later taken over by larger rival Johnston Carmichael in 2004 – Dow joined Henderson Loggie’s Dundee office in 1996 as an audit manager. Auditing didn’t give her the same buzz as straight accounting though – she decided that she wanted to be involved in preparing the figures instead of simply checking them – and so she switched from practice into industry in 1998 with what is still known affectionately in the North of Scotland as the ‘hydro board’, before joining Scottish Water in 2002.

“My first big break was working as the finance lead for Scottish Water’s price review,” she explains. “That then gave me the opportunity to get involved in writing the first business plan for the retail subsidiary that eventually went onto become Business Stream.

“It was a world-first, so there was no blueprint to follow. It was a tremendous opportunity for me because it took me out

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INTERVIEW bqlive.co.uk

of the comfort of being a finance specialist.

“When there are only four people setting up a company then you get exposed to all sorts of areas of the business. We had a very tight deadline set by the regulator ahead of deregulation, so it was high pressure but very rewarding.”

When the water market was opened to competition in 2008, suddenly companies, public-sector organisations and other nondomestic customers were given the choice from whom they could buy their water. Scottish Water remained as the wholesale provider – the owner and maintainer of the reservoirs, pipes and other infrastructure – and began supplying the wet stuff to a host of retailers.

Business Stream started out with a monopoly and only a handful of competitors; it still has a 50% share of the non-domestic market but now has around 20 rivals. The organisation has about 100,000 customers in Scotland and a similar number in the South-East of England following its deal with Southern Water.

“We’ve helped customers to save £133m from their bills in the past eight years – there aren’t many businesses that help their customers to use less of their core product,” says Dow. “That can be anything from simple things like fitting aerators to taps or what we call ‘hippos’ to toilets all the way through to massive engineering works.

“The businesses we serve range from hairdressers on the high street that may just have a tap and a toilet through to massive industrial organisations and everything in between. When it comes to innovation, we pinch a lot of ideas from elsewhere – like a single consolidated bill for all a customer’s UK sites, which is what we used to do in the electricity industry – but when it comes to new technologies we specialise in waste water and effluence.”

Scottish Water is a regulated body and so has a default set of wholesale charges. The water retailers also have a default set of charges,

which represent the maximum amounts for which they can bill their customers; competition arises as the retailers compete with lower prices, with clients typically paying a fixed charge for their water meter and then a price for each litre of water they use.

Business Stream had around 125 members of staff when it was created in 2007, with its headcount having since risen to around 250, compared to 3,800 at Scottish Water. Its most recent set of accounts showed that revenues fell from £364m in 2013-14 to £320m in 2014-15.

Conversations about structure and revenues inevitably lead onto questions about profit – or is that a surplus if it’s a publicly-owned company? “Profits – they’re most definitely profits,” Dow is adamant.

“We see ourselves as a commercial organisation.

I often forget that we are public-sector owned because we operate as a business. Business Stream was allocated funds when it was created and we’ve not had to draw down any further funds.”

Running the business using the profit it generates rather than the taxpayer’s pound seems fairly straightforward. But what’s the relationship between Scottish Water and Business Stream, with the former not only being the owner of the latter but also the wholesaler to its retailer?

“It’s quite odd,” admits Dow. “With a business like SSE, for example, you have a group company and then subsidiaries that sit underneath it.

“In Scottish Water that’s not the case. In effect, Scottish Water – the wholesale business – is our parent company. What sits between the two businesses is a holding company, with the snappy name of Scottish Water Business Stream Holdings Limited.

“Our board takes independent decisions about the future of Business Stream and Business Stream draws down finance from the holding company, but at a commercial rate of interest

“We’ve helped customers to save £133m from their bills in the past eight years – there aren’t many businesses that help their customers to use less of their core product”

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rather than a public-sector rate of interest.

The regulator wanted to create a level playing field – if new entrants couldn’t access funds at public-sector rates then neither should we. It’s a unique relationship, and it’s complicated, but it works.”

Business Stream is currently recruiting nonexecutive directors for its board and is using a competitive process and a head-hunter, in the same way as a privately-owned company.

Although the board of the holding company could object to a nominee, that hasn’t happened yet, while the organisation also keeps civil servants advised on candidates.

There are some issues on which the two bodies can work together. Up and down the country, newspapers regularly get calls from disgruntled housebuilders and commercial property developers complaining about the slowness of Scottish Water connecting their projects to the mains. Housebuilders will interact directly with Scottish Water, while commercial property developers will deal with Business Stream.

“Even over the past two years, the average amount of time it takes to make a connection has dropped dramatically from six months to twelve days,” Dow points out. “That’s not to say it’s perfect, but improvements have been made.” When it comes to growth, Dow has her eye on opportunities South of the Border. At the moment, only English customers that use more than five megalitres of water a year – enough to fill two Olympic-sized swimming pools – can swap retailer and even then only for a single site and just for their water supply and not their waste water or trade effluent.

All that will change when the market is deregulated on 1 April, 2017 – the number of businesses that can switch will skyrocket from around 27,000 at present to around 1.2 million, with potential revenues of £2.5bn up for grabs.

There are currently around 18 regional water wholesalers in England, some of which will choose to run their own retail arms but others that will focus simply on wholesaling, including Southern Water, which sold its non-domestic retail arm to Business Stream. The value of the deal wasn’t disclosed at the time, so all eyes will be on Business Stream’s next set of accounts.

Other businesses – such as Blairgowrie-based Castle Water, which was set up as a challenger in Scotland and which already has deals in place with Portsmouth Water and Thames Water –

“The opportunity in the English market is huge. It’s a chance for us to take the experience we’ve built-up over eight years in Scotland and use it in earnest” have positioned themselves so they’re ready for the starting gun to be fired. While the regulator North of the Border has separated Scottish Water as a wholesaler and Business Stream as a retailer – each with its own board and financing – Dow points out that the requirements aren’t the same in England, with laxer separation. One of her key concerns is whether the playing field will be level for new entrants.

“The opportunity in the English market is huge,” she adds. “It’s a chance for us to take the experience we’ve built-up over eight years in Scotland and use it in earnest.

“The number of customers that have already switched in England is only in the teens out of a potential 27,000. We’re one of the dominant players, in that we’ve switched most of those sites in the South, but we’ve been very selective about the types of customers that we’ve interacted with to-date because we viewed it as a learning experience, particularly the interaction with the different wholesalers, which all have different prices and levels of service.

“We’ve been careful about the sectors and the geographic locations that we’ve worked with.

For example, for House of Fraser we supply its flagship store on Oxford Street in London and

some of its other shops throughout England.”

NHS Salford is another high-profile customer south of the Border, alongside the roster of familiar Scottish names like The Gleneagles Hotel and the Landmark theme park at Carrbridge, near Aviemore.

Away from her day-job, Dow sits on the assurance group set up by the UK Government’s Department for Environment, Food & Rural Affairs – or DEFRA to its friends – to monitor market readiness for deregulation and on the customer forum launched by the water regulator in Scotland. Outside work, while she is a self-confessed ‘gym bunny’ and keen cyclist, most of her ‘spare’ time is taken up acting as ‘mum’s taxi service’ for her eight-year-old twins. With such a busy executive role, there’s no time for non-executive positions with other companies. Besides, Dow still has a professional score to settle.

“One of the issues we face is that, because the Scottish market is already deregulated, we have all of the English water companies competing up here and taking our customers, but we can’t reciprocate down South,” she smiles.

“I can’t wait for 2017 to come so we can get our own back.” n

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Rocket man

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Duncan Logan, the Scottish founder of San Francisco-based technology accelerator RocketSpace, joined BQ Scotland editor Peter Ranscombe live on stage at the We Are The Future Startup Summit in Edinburgh to discuss Uber, other unicorns and the importance of coding RocketSpace has been involved in nurturing 17 ‘unicorns’ – digital technology companies valued at more than US $1 billion – including Spotify and Uber. How does RocketSpace help tech companies?

A We remove friction and help companies to get funded – but we’re not an incubator, we’re not sitting there and telling people what they should do with their businesses. During our first five years, the companies at RocketSpace have raised US$20bn – a lot of that is down to the introductions we’ve made.

The foundation of RocketSpace came from a comment by Marc Andreessen: ‘Software is eating the world’. Everyone’s heard that comment, but most people get that comment wrong; they think it’s because software is working its way up through every industry but the true meaning is that, in the past software companies produced software and

sold their product to the incumbent companies, but now with two billion people on the internet those companies can produce the software and go straight to the customer. They cut out and disrupt the incumbent. In the past Uber would have produced its software and sold it to black cab or yellow taxi companies, or Airbnb would have sold its software to a hotel chain, but now they just go straight to the market.

I wanted to work with entrepreneurs who were passionate about starting businesses and I wanted to do something focused around tech. So, I thought about the core components that tech companies need: the first was access to capital.

This isn’t a flippant comment, but raising capital has never been easier, but building a fundable company has never been harder.

A lot of companies fail not because their ideas are bad or they can’t raise capital but because they

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can’t go as fast as the market is going – so our second component is helping start-ups to find partners. The biggest part of our business is our corporate services innovation business; we’re consulting to 150-plus Fortune 100 corporates through which we’re connecting start-ups to the right people and then driving those projects.

It’s brilliant for the start-ups because they get scale and great for the corporates because they’re getting outsourced innovation coming into their organisations. Access to each other is probably the most important element of all – it’s hard to innovate on your own. I’m in awe of the first unicorn in any city because if you’re not surrounded by other people all moving at the same pace then how do you get your performance so high above the curve?

Where did the idea for RocketSpace come from and how did you go about setting it up?

A If you’re not a coder then you should avoid setting up a coding-led business. I don’t code and if I was young again then I would go and learn to code in a heartbeat. Because I couldn’t code, I couldn’t inspect what the coders were doing. I had a bad experience running a pure tech start-up, so after that I decided that I still wanted to do something in this area that I was passionate about, but not coding – and that’s where the idea for RocketSpace came from.

You recently raised US$336 million from HNA – what prompted you to pick a Chinese investor and what will that cash enable you to do?

A It was a conscious decision. If we want to be a global company then China is going to be a big part of our market. China is fascinating. The size and scale is just staggering. The Chinese tech ecosystem is so competitive compared to the Valley and it’s iterating faster and faster.

We’re rolling out campuses around the world, including London in partnership with Royal Bank of Scotland. We’ll also be making other announcements in the coming months about new projects.

Help us to ‘See ourselves as others see us’ – what are your impressions about the tech ecosystem in Scotland and is there anything that we’re not doing that you’d like to see us doing?

The first four or five steps don’t look that impressive but after that growth becomes exponential. Scotland has a tech scene and there’s been a lot of work going on with little reward, but now we’ve got Skyscanner and FanDuel. What Scotland has going for it is huge political will, which is awesome, and a huge educated workforce coming out of the universities. In the Valley, we’ve moved from capitalism to ‘talentism’ because the shortage is not capital, the shortage is talent.

Every start-up in the Valley is just focussed on talent, talent, talent. How do we attract, retain and inspire talent?

Out of all the unicorns that have passed through RocketSpace, are there any that hold a special place in your heart?

A When I go to China, I’m treated like a film star because they adore Uber and I have to tell them that I’m not the founder and I didn’t invest in Uber. Uber’s desk was right outside my office.

Why didn’t I invest?

Another would be Leap Motion, which has become a big company but they started off as just two guys. They were the bane of my life because they were constantly trying to solder stuff and were blowing fuses in the office, which was full of smoke. They were amusing and the nerdiest of guys.

The third one was a British one – Blipper. I wish this happened every time – they came out to California to be introduced to capital, they spoke to me and I introduced them to someone in London. Three weeks later he wrote them a cheque. It’s never usually that simple.

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What are your top tips for budding entrepreneurs?

A When I left university, I found jobs in banking very easily because I could use Excel spreadsheets. I’m going to age myself because back then not many people could use them.

The same is true of coding – it doesn’t matter if you’re going to end up working in human resources or public relations, front office, back office, wherever, if you know how to code then you’ll have an advantage over people who don’t. It’s not as hard as you think to learn the basics. At RocketSpace, we have this idea about ‘finding the science’. We believe there’s always a deeper level. What’s the science of hiring talent? Always understand the science of what you’re doing. Scots will hate me for saying this, but if you are deeply passionate about tech then spending a little bit of time in California is invaluable. I’m not saying move there, but go and see how they do it there and then come home and do it in Scotland. n

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East of Eden

From its base in North-East Fife, Eden Mill brewery and distillery is making waves as far away as China and the United States. Peter Ranscombe catches up with Paul Miller to find out what’s next for the unique drinks plant

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“He couldn’t believe that, in such an iconic location as St Andrews with such high consumer footfall from all over the world, no-one had looked at the opportunity to make and sell some kind of alcohol beverage brand rooted in the town” Some entrepreneurs dream of opening their own distillery; others fantasise about owning their own brewery. Paul Miller decided to do both.

Looking back over his career history, perhaps it’s not surprising that Miller has a passion for both beer and spirits. Having cut his teeth at International Distillers & Vintners – now part of Diageo, Scotland’s largest whisky distiller and the owner of brands including Bell’s, J&B and the legendary Johnnie Walker – Miller went on to become a regional director at Scotch maker Glenmorangie and then spent more than a decade at brewing giant Molson Coors’ Scottish operations, first as its sales director and then as its managing director.

Then in 2012 he took the leap and set up his own business – Eden Mill, Scotland’s first and, so far, only brewery and distillery on a single site.

And that site has an interesting history.

As he bounces down from one of the stools in Eden Mill’s tasting room, Miller points excitedly to a painting on the wall.

“A Dutch art dealer – complete with a cravat, monocle and mustard-coloured cords – pulled up one day in a Rolls-Royce and showed us this painting,” he explains. “It shows the site as it would have looked in 1855 – the whole history

is encapsulated in this picture.”

The Haig family, a name synonymous with the development of the Scotch whisky industry, had been making single malt down the road at Strathkinness since 1796 and moved to the site at Guardbridge on the shore of the Eden estuary near St Andrews in Fife in 1810. The Haigs stayed until 1869 when they switched production to what is now Diageo’s Cameronbridge facility, one of Scotland’s largest distilleries, with part of the site becoming a brewery for a time and the rest being transformed into a paper mill.

The mill closed in 2008 and, when the site was bought by the University of St Andrews in 2010, Miller spotted an opportunity. But the idea of opening a brewery or distillery in or near the ‘home of golf’ had been germinating for much longer than that.

“When I was at Glenmorangie, I used to pick up visitors from all over the world at Edinburgh airport and then drive them up to Tain or fly them over to Islay to visit Ardbeg,” Miller remembers. “I began wondering why more people hadn’t built distilleries nearer to the Central Belt.

“It crystallised when I was in the Old Course Hotel in St Andrews in 2008 at three o’clock

in the morning and I was talking to my then big boss, Pete Coors, who owned the Coors Brewery. He had all his big American customers over and they were all playing golf, as they do every couple of years.

“Pete turned to me and said: ‘Hey pal, tomorrow I don’t want to play golf – take me to the nearest brewery or distillery’. And I was like: ‘Pete, I don’t know where the nearest brewery or distillery is’. I was thinking it must be at least an hour away – there was Inveralmond brewery in Perth or maybe Tullibardine distillery.

“He couldn’t believe that, in such an iconic location as St Andrews with such high consumer footfall from all over the world, no-one had looked at the opportunity to make and sell some kind of alcohol beverage brand rooted in the town.”

The seed was sown. Having lived in Fife since 1994 when he moved back from London, Miller already knew about the high quality of the area’s barley and other grains; Pepsi’s Quaker Oats division has a plant nearby at Cupar.

He also saw the opportunity for a tourist attraction. “At any given time, almost two-thirds of the people staying in St Andrews are visitors of one sort or another, be they students or golfers,” Miller says. “It makes sense for the

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town to have something else beyond the golf and the very smart university.”

Miller also took inspiration from Coors.

Although the company owns some of the world’s largest beer brands, it also has Blue Moon, which was based at a craft brewery in the baseball stadium in Denver.

He spent two years looking for a suitable site within the town of St Andrews itself but, with its medieval street layout and protected architecture, he couldn’t find the right premises for a boutique brewery or distillery. “I kept looking and kept looking and I even looked as far away as Kinross, but that was stretching it too far,” Miller admits.

When he heard the university had bought the old Guardbridge paper mill, he got straight on the phone. The site was already zoned by planners for industrial use.

Despite the university having not decided how it was going to use the site, Miller persuaded it to let him use part of the empty complex to set up his Eden Brewery. After patching holes in the roof, he was ready to go.

To fund the venture, Miller teamed up with his friend Tony Kelly, a long-time friend and telecommunications entrepreneur whose knowledge and experience with digital media complemented his own skills in production and sales. The pair are still the company’s sole shareholders and have continued to finance the expansion personally.

Eden Brewery initially produced 20 to 25 barrels a week from its five-barrel brew-plant, supplying pubs and bars in the surrounding area with kegs and bottles. In tandem, Miller began offering tours of the tiny brewery, which were an immediate hit.

“The problem was that people visited the brewery and wanted to buy a product that had been authentically made in St Andrews – and all we could do was sell them a three-pack of beer and a glass for a tenner,” explains Miller.

“People were prepared to pay for a product that had provenance and authenticity and a three-pack of beer was in no way maximising the opportunity.

“So, in January 2014, we set about creating a distillery. Everyone thought we were mad.

But I said that by the time of the independence referendum in September 2014 we would be

“People were prepared to pay for a product that had provenance and authenticity and a three-pack of beer was in no way maximising the opportunity” making whisky.

“We had the distillery ready by September, but we were waiting for HM Revenue & Customs’ approval. We put our first spirit into cask on 14 November 2014, which was phenomenal in 11 months. People always think a distillery costs about £8 million and takes about eight years to build.”

The university was still humming and harring over how to best use the site, but it allowed Miller to expand into the area that currently houses Eden Mill, allowing him to construct a

bonded warehouse and the visitors’ centre.

In order to be sold as ‘Scotch whisky’, a spirit must be made in Scotland from cereals, water and yeast and aged for at least three years in oak casks. Once, the accepted wisdom was that it took ten, twelve or even more years for the whisky to mature and reach the stage where customers would pay decent prices to drink it.

Yet the emergence of craft or boutique distilleries has started to turn that idea on its head. If the quality of their spirit is really high and if it’s aged in the right wood then it could

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be ready to drink much earlier than the whiskies of the past.

Having laid down his first spirit to mature in November 2014, Miller still had to wait a further year before he could start to sell his first single malt whisky from Eden Mill. But, in the meantime, he had another trick up his sleeve.

Eden Mill is launching its own range of blended whiskies. These bottlings will use Scotch made at another distillery but which will then finish its ageing in some of Miller’s wide range of weird and wonderful casks.

“We will take this four- or five-year-old blended whisky as our index or reference point and allow visitors to taste it,” Miller explains. “We’ll then allow them to taste the different finishes so they can see how the different types of wooden cask affect the whisky.

“It’s one way of helping to demystify Scotch and help drinkers to learn what they like and why they like it. Visitors want to buy Scotch when they come on a distillery tour and they don’t want to wait another year or 18 months, so these blends will give us something to sell to them in the meantime.

“We have an incredible policy for our wood – everything is either interesting, first-fill, or virgin oak,” he adds. “You won’t see anything that doesn’t meet at least one of those three criteria.

That goes back to my Glenmorangie days. We don’t spare the horses.

“We employ more distillers per litre of spirit and produce more than any other distillery in Scotland – we’re proud of that too. We have six fully-qualified distillers from HeriotWatt University in Edinburgh. Our kit is very traditional – very labour-intensive and very hands-on. It’s quite fun as well.”

Beer might be how it all began for Eden Mill and whisky might be Miller’s passion – but it’s a third tipple for which his company has perhaps become best known. Gin wasn’t originally part of the business’s plan, but the resurgence in the popularity of Scottish gin – with other microdistilleries making it as a way of generating cash flow while their whisky ages – presented an opportunity.

In true Eden Mill style, Miller didn’t want to just make any old gin. His distillers came to him with the idea of creating a hopped gin – only the third in the world, using beer hops as part of

the mix of botanicals – and Miller gave them his blessing because it fitted in with the story of the brewery turning into a distillery.

“I thought they were mad,” laughs Miller. “It was like Marmite – some folk hated it and some folk loved it.”

As well as the hopped gin, the firm has also made a ‘golf’ gin using the types of botanicals found growing around golf courses in Scotland, an ‘oak’ gin aged in wooden barrels, ‘love’ gin made with floral and berry flavours, and a gin that includes the buckthorn berries found growing along the east coast.

While the tastes may be different, there’s another factor that sets the gins apart too and that’s the shape of the pewter bottles, with their swing tops, reminiscent of Kilner jars. “We bought a whole load of these bottles in 2013 to put our premium wood-aged beers in as a highquality gift,” Miller explains, as he picks up one of the distinctive containers.

“But we bottle everything on site by hand and we couldn’t fit these bottles into the bottling machine. So rather than getting a new nozzle fitted to the bottling machine, we just left these two palettes of bottles sitting in the corner of the warehouse.

“When the distillers asked to make a gin I said they could do it but I wouldn’t spend any extra money on bottles so they would have to use these spare ones. That’s how it all started and we’re now the biggest customer in the UK for the company that makes them. It was a complete accident – no marketing genius at all.”

The company’s ‘12 gins of Christmas’ advent

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calendar is back for a second year and the latest brand extension features ready-mixed gin cocktails, which are on sale in Aldi, Asda, Sainsbury’s, Scotmid and Spar. The gin cocktails are expected to add around £500,000 to Eden Mill’s turnover, taking revenues through the £4m mark during the current financial year, more than double the £1.8m of sales posted in the previous set of accounts, and putting the business on course to post its maiden profit.

Soaring sales are helping to finance the company’s £3m expansion plans. This time next year, Miller will be preparing to move into expanded facilities on the Guardbridge site.

The University of St Andrews plans to move its collection of rare books to the site and to construct a biomass plant, which will generate power for the institution. Eden Mill, which already employs 48 people, is taking the opportunity to expand its operations, increasing the size of its spirits still to 4,000 - 5,000 litres and its washback to 7,000 - 8,000 litres.

“Then we’ll be able to make around four-times our current production of whisky,” explains Miller. “That will allow us to sell around 20,000 cases a year once it’s finally matured.

“For once we’re planning further ahead and working out how much space we’ll need for the long-term, instead of just expanding piecemeal.

We’ll also have a more conventional frontage along the roadside, which will help to make the visitors’ centre more visible.

“Some people refer to this place as the ‘Disneyland for adults’ and it does feel like that sometimes.” n

IT’S NOT JUST RISKS YOU HAVE TO MANAGE, IT’S OPPORTUNITIES TOO Richard Mackie, associate director at RSM For many entrepreneurial businesses, understanding and mitigating potential dangers is central to ongoing success. But what if sidestepping negative events was only one part of the equation? For fast-growing organisations, missed opportunities often pose a bigger threat.

The idea that businesses must focus as much on harnessing opportunities as minimising potential dangers is enshrined in the concept of opportunity risk. This approach encourages companies to pinpoint external and internal opportunities and consider the risk to their business if they do not take full advantage of them.

In other words, if risk management is about prevention, opportunity risk is about maximisation.

The latter gives assurance that an organisation has all the mechanisms in place to achieve and deliver on opportunities. Without a firm handle on this, growth expectations are unlikely to be met on time or on budget.

By focusing on opportunities, businesses also find that they can more easily embed change within their organisations. While risk assessment can sometimes be seen as a reason for not doing something, opportunity risk is about fostering the reaction: ‘Yes we can, and we’re going to do it well.’

This is critical for fast-growing entrepreneurial businesses. Thinking about opportunities as well as risks helps organisations realise that stagnation and a failure to innovate can mean the difference between commercial life and death. It encourages businesses to confidently push forward, transform and succeed.

There are five potential opportunities that businesses rarely maximise.

• Remaining relevant – do you have a plan to keep pace with ever-changing customer trends and spending habits?

• Partnership and collaboration – can you boost your offering by working with others rather than competing with them?

• Strategic expansion – have you properly defined how you want to grow and do you have the financial and resource capacity to support this?

• Succession planning, knowledge and retention – businesses in a rush to grow often recruit whizz kids from other industries. How can you better support recruitment from within?

• A strong brand – as you grow, will people know what you stand for? Will you capture the hearts and minds of your customers today and tomorrow?

To embed opportunity risk, businesses must first identify potential opportunities and the likelihood of achieving them. This involves understanding what factors will make it easier to realise the opportunity – perhaps cash investment or the right team – and whether the business is able to draw on these. If not, it must look at what improvements need to be put in place.

The final stage is to understand the benefits that realising the opportunity will bring. Will it deliver projected sales, positive media interest or stakeholder improvements? Proper controls and actions should then be put in place to ensure these benefits are not just achieved, but maximised.

Only once this is achieved can true opportunity management and prioritisation begin.

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k. Each member of the RSM network is an independent accounting and consulting firm, each of which practices in its own right. The RSM network is not itself a and Wales (company number 4040598) whose registered office is at 50 Cannon Street, London EC4N 6JJ. The brand and trademark RSM and other intellectual e of Switzerland whose seat is in Zug.

After 212 entries, 60 finalists and seven months of competition, the winners of the 2016 Converge Challenge have been revealed. The company creation contest – which is open to students, staff and recent graduates from all of Scotland’s universities and other higher education institutions – attracted a record number of entrants this year, meaning that competition was especially fierce.

For the first time, two entrepreneurs were named as joint winners of the Converge Challenge, with Professor Marc Desmulliez, from Heriot-Watt University in Edinburgh, and Susanne Mitchske, of the University of Glasgow, sharing the top honours. Desmulliez leads MicroSense Technologies, the company behind FoodSense, a sensor system aimed at reducing waste and improving monitoring on processing lines in the food and drink industries, while Mitchske has created MindMate, a digital platform for supporting people with dementia and their families. The two companies will share the £71,000 first prize, which consists of £43,000 in cash and £28,000 in business support. The prize for second place was awarded to Chris Hughes of the University of Strathclyde for Estendio, which is developing

University challenge brings joint honours Company creation competition Converge attracted record entrants with a number of new ideas technology to help people with dyslexia, with Hughes scooping £15,000 in cash and £14,000 in business support. Olga Kozlova, founder and director of Converge Challenge, says: “My congratulations to all the winners, the finalists and the participants of Converge Challenge 2016 for raising the bar yet again. This is the first time we have had a joint first place and it is testament to the quality of this year’s finalists.

“Scotland’s universities have once again shown that their ambition to create world-leading products and services is thriving and we are committed to offering the practical support that these blossoming ideas always need. I would also like to thank all our partners for

their continued support; we are already looking forward to Converge Challenge 2017.”

To mark the Year of Innovation, Architecture & Design, a new Design & Creativity Award was created. The prize – which consisted of £10,000 in cash and £14,500 in business support – was won by Alexander Enoch of the University of Edinburgh for Robotical, a company that creates robots to inspire and engage the next generation of engineers and scientists.

The KickStart prize for early stage ideas was awarded to David Harris-Birtill of the University of St Andrews for Beyond Medics, which has developed an automated remote pulse oximetry, a camera-based system that remotely measures

CONVERGE CHALLENGE bqlive.co.uk

patients’ vital signs. He received a cash prize of £3,000. Second prize of £2,000 in cash in the KickStart competition went to Yuri Belotti of the University of Dundee for an automated timeresolved cell stretcher. An additional prize for the KickStart finalists was the KickStart Digital Entrepreneur Award, which recognised internet entrepreneurialism and the online marketing talent of the finalists’ early-stage ideas. The winner was chosen by an online vote that was open to the public in the weeks leading up to the final. The prize awarded to Richard McAdam from Edinburgh Napier University for Regenerative Shock Absorber, an innovative shock absorber that generates electricity and reduces fuel consumption and harmful emissions. McAdam received his prize from David Townsley, group account director at BQ, which was the media partner for the Converge Challenge. The Social Enterprise category, in collaboration with Firstport, focused on ideas that will have a positive impact on social and environmental issues. First prize of £5,000 cash was awarded to Erika Grant of the University of Aberdeen for Project TurnKey, a social enterprise that empowers people to see a life beyond prostitution. Christopher Murray of the

University of Dundee took the £3,000 second prize for The Comics Studio. The Entrepreneurial Spirit Award, sponsored by membership body Entrepreneurial Scotland, was designed to recognise a participant that demonstrated drive, focus and determination. The cash prize of £1,000 was awarded to Anna Renouf of the University of the Highlands & Islands with Orrin Equestrian, a company that is developing a pioneering saddle, produced from composite materials that will offer enhanced comfort for the horse and rider, allowing them to work to their maximum potential.

Lord Karan Bilimoria, chairman and founder of Cobra Beer Partnership, stole the show for many of the 220 guests at the Assembly Rooms in Edinburgh with an entertaining keynote speech before dinner about how he setup his company, which even included a poem about entrepreneurialism. Keith Brown, Cabinet Secretary for the Economy, Jobs & Fair Work, also delivered a speech before the dinner was served. He says: “Converge Challenge is an excellent example of universities collaborating, sharing best practice in entrepreneurial education and activity.

“To be a ‘Can Do’ nation, we know that our

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prosperity depends on successful new ideas and businesses being created here in Scotland, which is why entrepreneurs and innovators will be fundamental to generating jobs and economic growth in the future. Converge Challenge makes an invaluable contribution towards Scotland becoming a world-leading entrepreneurial nation.”

After dinner, Susan Deacon, chair of Institute of Directors Scotland, delivered a keynote speech in which she reflected on the ten years since she stood down as a Member of the Scottish Parliament (MSP). She says: “Collaboration and teamwork are key to the success of every business and to our economy.

“Converge is a fantastic example of what can be achieved when universities and businesses combine their efforts to bring people and ideas together and to support the next generation of entrepreneurs. We should never underestimate the importance of forging the human connections which enable individuals and their companies to learn, innovate and grow.” n The next Converge Challenge will open for entries in February 2017 – find out more at www.convergechallenge.com

“There’s a generation now that aren’t thinking about buying – their peers are renting so there’s not that same pressure to become a homeowner.”

Tennis stars Andy and Jamie Murray and rugby’s Gavin and Scott Hastings are among the famous Scottish sibblings who have made their mark on the world of sport. But what about the sphere of business?

Step up to the stage the Alexander brothers – not the internationally-renowned musicians who at one point were Scotland’s biggest variety entertainment celebrities – but David and John, stars of the residential lettings sector.

David arrives first at The Wee Restaurant in Edinburgh’s New Town, the venue for our business lunch. He’s been before and is looking forward to something more substantial than his usual sandwich. “No-one does the ‘business lunch’ thing anymore,” he notes, adding: “Even journalists.”

Well, we have our moments, I tell him as John strolls in, apologising for being slightly late. “We’ve only had the one bottle of wine,” David jokes, bringing him up to speed on the previous conversation before they peruse the menu and opt for starters of ham hock terrine and chilled gazpacho with Scottish crab. Selecting mains of wild mushroom spelt grain risotto and grilled sea bass,

Brothers in arms David and John Alexander combined their property businesses to become one of the largest firms in Scotland.

Karen Peattie joins them for lunch to find out if any sibling rivalries remain post-merger

BUSINESS LUNCH bqlive.co.uk

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spiced crab and spring onion risotto, the brothers are ready to rock and roll.

Showing no outward signs of sibling rivalry – at least in public – the brothers are joint managing directors of their Edinburgh-based lettings and property management business, DJ Alexander, and are known as both industry experts and trailblazers. David set up DJ Alexander in Leith in 1982 and John founded Edinburgh Property Managers (EPM) in 1989 but they also worked together, finally merging the two businesses in 2012.

Now the largest lettings agency in Central Scotland with offices in Edinburgh and Glasgow, the company has been leading the property services pack for nearly 35 years and continues to grow. Indeed, their combined experience of the sector is surely unrivalled North of the Border.

“We’re in a good place just now,” says David.

“Business isn’t without its challenges but it’s buoyant, we’ve moved into new markets and we know exactly what our clients and tenants want, and what the demands of the market are.”

So why did these two independently successful businessmen decide to become brothers in arms? “It wasn’t something we had long and hard discussions about,” David points out. “We were operating very much in the same space and we felt we could achieve more by working together and pooling resources and experience. It made sense to join forces.”

Their roles are clearly defined with David very much the ‘face’ of the business, looking after the front end of the operation and John focusing on technology systems and implementing the structures that make DJ Alexander run efficiently. “I’m useless at all the things John does,” says David. “We both do our own thing but equally make the joint decisions – it works for us.”

John has been less high-profile than David and admits he has found a new lease of life since the merger. “I lived in France for a number of years and when I came back I threw myself into the coalface – I found that very invigorating,” he admits. “As David said earlier, we’re in a good place with the business just now.

“I’m 51 and David’s 56 so we’re at a stage where we’ve notched up serious experience, which gives you the confidence to do things you might not have been brave enough to do 20 years ago. We worked together early on in our careers and it’s good to be back together again – we’re comfortable in the knowledge that we’re still hungry to move things on to the next level.”

Last year, the firm appointed its first director from outside the family, promoting head of business development Rob Trotter to the new role of associate director. DJ Alexander also secured substantial funding from private and institutional investors to drive an acquisition programme that has seen the firm take over a long-established Musselburgh agency, Regimental

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BUSINESS LUNCH bqlive.co.uk

“We were operating very much in the same space and we felt we could achieve more by working together and pooling resources and experience. It made sense to join forces”

Properties. Much of our growth over many years has been organic and we’ve got clients who have been with us for the best part of 30 years but we’re aware that we need to look beyond client recommendations,” David continues.

“We place much more weight now on online marketing and we’re amazed that our website gets almost 50,000 visits every month from more than 130 countries. We’ve also advertised on TV and launched an advertising campaign with STV last year, which ran for eight months both locally and nationally.”

With its estate agency and solicitors’ arm operating under a separate company launched in 2014, DJ Alexander Legal, the business effectively offers a one-stop shop for anyone looking to rent, buy or sell property. “We’re seeing a lot of interest from people wanting to invest in the property market just now,” says David. “Interest rates are low and people have a bit of money in the bank.

“Ten to 15 years ago getting your foot on

the property ladder was the holy grail for many people but now it’s not so easy to get a mortgage there’s a different culture around renting and that opens up opportunities for investors as well as providing more suitable properties for rent,” he continues. “There’s a generation now that aren’t thinking about buying – their peers are renting so there’s not that same pressure to become a homeowner.”

John agrees. “It is not seen as a negative thing to rent and the ‘Rising Damp’ image of renting is long gone,” he says. “It used to be that people would buy a property to let then fill it up with granny’s old furniture and a second-hand fridge and washing machine – that’s no longer acceptable to renters and that school of thought is something we’ve worked hard to consign to the past.

“However, there are some landlords, particularly first-time landlords who are dipping their toe in the water, who get too emotionally attached to the property they’re letting out and go

overboard with the way they decorate and furnish it. It’s fine for you to like floral curtains and patterned wallpaper but prospective tenants might not share your views when it comes to interior design and that’s what we have to manage – it’s about finding a balance.

“Landlords also need to understand that their tenant needs a quick resolution to any problems that arise,” John goes on. “So if the washing machine leaks or the central heating breaks down it has to be dealt with as soon as possible – your tenant can’t wait for you to get back from your fortnight’s holiday to give us the goahead to get a repair carried out.

“There’s a lot to think about before you become a landlord and it might actually not be the investment for you – but we can advise you.

And, of course, it’s not our job to tell you that you have to use an agent although it’s a bit of a minefield to find your way around without one.”

For many people, it makes sense to rent,

BUSINESS LUNCH bqlive.co.uk

particularly at the top end of the market, John points out. “There’s a strong economic argument for renting,” he says. “You can rent a property you could not afford to purchase.

For example, if you know you’re going to be working in Edinburgh two to three years it could prove expensive to go through the process of buying then selling again in what would be a relatively short space of time.”

With around 5,000 properties under management across its Edinburgh and Glasgow offices, DJ Alexander knows only too well the myriad legislation facing everyone renting, buying or selling a property. “Legislation has always been a challenge in this business,” says David, who describes some of the red tape facing landlords as “unhelpful”.

“I don’t disagree that there should be legislation to protect tenants from unscrupulous landlords but the government has to remember that for every rogue landlord there’s a rogue tenant.

Of course, tenants need protection but so do landlords.”

The Private Housing (Tenancies) Bill is designed to offer protection against the threat of unfair eviction and big rent increases although the Alexanders urge caution.

“I think the danger with legislation is that it could discourage private landlords from entering the market,” suggests John. “We’re dealing with many big investors with multiple properties who aren’t affected but others are. The new raft of legislation is the biggest shake-up we have seen in the market for a very long time. Tenants get a much better deal today than they did ten or 20 years ago and I think the government must be careful to find a balance so as not to discourage investment.”

Meanwhile, in a market where demand still exceeds supply, the focus for DJ Alexander is on providing the best possible customer service for the client. “We’re both passionate about customer service and that’s always been at the forefront of what we do,” says David. “We have a great team of staff who share our passion and it’s great to be able to say that many people have been with us for more than ten years. It’s satisfying to watch people grow and develop with you.”

As lunch draws to a close and the Alexander brothers head off to separate meetings, it’s clear that this duo won’t be leaving the property stage anytime soon. n

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The Wee Restaurant, Edinburgh Having opened The Wee Restaurant in North Queensferry, husband-and-wife team Craig and Vikki Wood quickly attracted a loyal clientele from both sides of the Forth Bridge. Yet the Fife restaurant had to wait ten years for its sibling to come along.

The Woods chose Edinburgh’s New Town as the location for their next baby and their second Wee Restaurant was born at 61 Frederick Street – the former site of Fleur de Sel – in April.

Sharing the same ethos of the original restaurant, The Wee Restaurant Edinburgh offers “simple good food and wine” coupled with efficient, friendly and informal service. For Craig, it’s all about delivering great food that’s based around the seasons, cooked with care and passion. He’s very much on a mission to showcase Scotland’s larder. Spending his time between both kitchens and very much taking a hands-on role, this talented chef works closely with his head chefs – Sam Dorey in Fife and Michael Innes in Edinburgh – as well as writing menus, designing new dishes, tweaking old classics, training staff and overseeing the quality of the cuisine. Edinburgh-born Innes comes to The Wee Restaurant Edinburgh from the three-Michelin-star El Celler de Can Roca in Girona, Spain where he was head of production. The pair worked together at Edinburgh’s Malmaison 15 years ago when Wood was executive chef and Innes was a commis chef.

The Wee Restaurant Edinburgh opens for lunch and dinner from Tuesday to Sunday offering an a la carte menu as well as a set price menu du jour at lunchtime and until 5pm on Saturday.

It is closed on Mondays.

The Wee Restaurant is at 61 Frederick Street, Edinburgh, EH2 1LH. Find out more at www.theweerestaurant.co.uk or call 0131 225 7983

COMMERCIAL PROPERTY Scotsman Hotel up for sale JLL and CBRE have been appointed to sell the landmark Scotsman Hotel in Edinburgh.

Kerr Young, director of hotels and hospitality for JLL, said: “The Scotsman Hotel was placed into liquidation on 9 June and Eileen Blackburn of French Duncan was appointed by the court.

“Since this time the hotel has continued to trade under the liquidator’s supervision while efforts were made to reach agreement to return the company and its trading to its owners.

“Unfortunately this has not yet proved possible.

“In light of the buoyant nature of the Edinburgh hotel market, we are confident that our marketing process will attract credible buyers with a track record in operating high quality hotel assets of this nature.”

Rob Seabrook, director of hotels at CBRE, added: “The Scotsman Hotel is one of the most recognisable features of Edinburgh’s UNESCO world heritage skyline. Barriers to entry in Edinburgh remain high and we anticipate strong interest in this exceptional opportunity.”

The Scotsman newspaper left the building in

1999 to move to offices on Holyrood Road near the Scottish Parliament building, but has since relocated again to Orchard Brae House.

TH Real Estate hails Glasgow’s CBD The fourth floor of 2 West Regent Street in Glasgow has been added to the lettings market by TH Real Estate on behalf of Warburg HIH Invest. TH Real Estate bought the Grade-A building in March for £31.5m.

Tenants already occupying the building include Colliers International, Digby Brown and Willis Group. Martin Payne, senior fund manager at TH Real Estate, which has instructed Bilfinger GVA and Lambert Smith Hampton to market the floor, said: “The city’s central business district has benefited hugely over the past few years from a growing retail and leisure offer, which in turn has led to more and more demand for high-quality office accommodation.

“Two West Regent Street provides a unique opportunity to occupy high-quality space in a

The Scotsman Hotel, Edinburgh

thriving part of Glasgow, joining the established business community already at the building.

“We anticipate significant interest in the accommodation.”

First Nando’s for Inverness Chicken restaurant chain Nando’s has taken a 20-year lease on a unit at Inverness shopping park, which is currently undergoing a £13m revamp.

The outlet is being rented for £150,290 a year. It is one of three restaurants to be created out of the former Comet store on the park. Isla Monteith, a partner at Cushman & Wakefield, which handled the deal for Nando’s, said: “Inverness shopping park is the biggest retail park in the North of Scotland and a fantastic location for Nando’s latest restaurant.

“I am sure having the first Nando’s in Inverness will attract additional footfall to the park as it is such a popular brand.”

Be part of it thehaymarketedinburgh.com

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Rosewell House signs two tenants

Dandara expands into Edinburgh Dandara Group is preparing to expand into Edinburgh following the success of its developments at Glasgow Harbour and Forbes Place in Aberdeen. The company plans to turn Traquair House, a former office block near Murrayfield, into high-end apartments.

The firm said that a quarter of the flats that have been let on its Aberdeen site have been rented by businesses looking for alternatives to hotel accommodation. The first block of flats at Forbes Place, which has 292 apartments and penthouses, is already more than 70% occupied, with the second block due to be launched early in the new year. Lettings manager Mandy Anderson (above) said: “As Forbes Place is owned by a major institutional investor, residents don’t have to worry about receiving an unexpected notice to leave because the landlord has decided to sell up or move back in themselves – which can often be the case when renting from an individual landlord.

“The development is perfect for companies seeking high quality accommodation for employees, and professionals who move from location to location and don’t want to rely on hotels to provide the standard of living they desire.”

“Forbes Place, which has 292 apartments and penthouses, is already more than 70% occupied, with the second block due to be launched early in the new year”

Everything is Connected

Two new tenants have taken space at Rosewell House on the Connect business park in Newbridge on the outskirts of Edinburgh.

Dundee-based Scottish Electric Group has expanded its operations into the Lothians by taking 1,400sq ft on a five-year lease at £15 per sq ft.

Paisley-based building firm Clark Contracts has expanded into a 2,500sq ft suite on the ground floor to meet demand for its construction, refurbishment and maintenance services.

Clark Contracts has also taken a five-year lease at the same price as Scottish Electric Group.

Graeme McLean, property manager at Scotmid, which is the landlord for the site, said: “Rosewell House offers high-specification office space, which is ideal for occupiers that want an Edinburgh address but also to have immediate access to the Scottish motorway network.

“It is great to see these ambitious, expanding companies join the excellent line-up of tenants at Rosewell House.”

The office, which is being jointly let by Cushman & Wakefield and Ryden, sits next to Scotmid’s own headquarters.

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Design hub for Dundee

Pick picks Gordon Street Start-up company Pick Protection is one of seven tenants to sign up for office space at 30 Gordon Street in Glasgow since the beginning of this year.

Founder Rebecca Pick came up with the idea for her Personal Guardian alarm while at university and secured a £60,000 investment from the Gabriel business angel syndicate.

She also won prizes at the Converge Challenge business creation competition in both 2014 and 2015. Pick said: “I am so excited that we are finally about to launch the Personal Guardian and I am delighted we have found such a good base for the business.

“The building has real character and a great atmosphere and we can’t wait to move in.

“At the moment there are just three of us but eventually we hope to base a sales and marketing team in the offices which have room for up to 14 people.”

Other tenants in the building include GoBe Consultants, Odyssey Recruitment and Prescient Financial Intelligence. Martin Speirs, a letting agent at Cushman & Wakefield, which jointly markets the building with Ryden, said: “Demand for smaller office suites has been particularly strong in recent months.

“It is terrific we are seeing so many young entrepreneurs like Rebecca taking space in the city.”

Andrew Black Design has unveiled plans to create a design hub at the heart of Dundee’s new cultural quarter.

The architecture firm has submitted a planning application to transform Tay Street Lane Mews, a 19th-century building, into a business hub to accommodate “some of the best of Dundee’s creative talent”.

Dundee’s waterfront is undergoing a £1bn redevelopment, with the Victoria & Albert Museum’s Scottish outpost at its heart.

Relocating from its current Perth Road base, the project would see architect Andrew Black and his team regenerate the building, which dates from around 1830 and is built against part of the historic old town wall.

The buildings are C-listed and the exterior was renovated in 2011 by Dundee City Council.

Black said: “We are extremely excited about the plans which will position us in the heart of Dundee’s cultural quarter, just a few minutes’ walk from the Waterfront.

“We are proud to be part of Dundee, the UNESCO city of design, and see our move as an investment in our city, echoing its passion for both creativity and regeneration as a whole.

“The design of the mews is also an excellent opportunity to showcase the design skills and capabilities of the practice.”

Builders’ merchant opens in Gala MKM Building Supplies has opened its 45th branch on the Netherdale industrial estate in Galashiels, creating 13 jobs. Branch director Bob Hogarth said: “The team here are delighted to have the opportunity to show everyone in Galashiels and the surrounding area what MKM is all about.” Promotions to mark the branch’s opening included free bacon butties for customers during the first fortnight.

Where Business Meets Lifestyle

#WellConnected thehaymarketedinburgh.com

Everything is Connected

A prestigious joint venture between Interserve and Tiger Developments, tHe Haymarket is considered to be one of the UK’s most significant regional property developments of the last decade.

340,000 SQ FT OF PRIME OFFICE SPACE All office enquiries to:

07808 479 215 www.dougraysmith.com

thehaymarketedinburgh.com @tHeHaymarketEd #WellConnected A development by:

0131 255 8344 www.wymre.com

0131 255 2583 jll.co.uk/property

www.interserve.com

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53

Picture perfect How do you make sure that Scotland’s oldest art gallery is fit and ready for the 21st century?

Newly-appointed managing director Christina Jansen tells Peter Ranscombe how she plans to keep The Scottish Gallery relevant as it prepares to celebrate its 175th anniversary

Walking down Dundas Street feels like stepping into the heart of Edinburgh’s art scene. From Anthony Woodd and Open Eye Gallery at the top of the hill, past the lavish exteriors of The Fine Art Society and The Dundas Gallery and on down to The Sutton Gallery, The Edinburgh Gallery and Greyfriars Art Shop, the road is bustling with delivery vans dropping off or picking up canvasses.

Nestled at the heart of the artistic quarter sits The Scottish Gallery, which moved to its Dundas Street home in 1992. Its history stretches back much further though. The company was founded in 1842 on South St David Street by Aitken Dott as ‘gilders, framers and artists’ colourmen’. The business expanded into larger premises on Castle Street in 1860 and added a dedicated showroom in 1897, which was christened ‘The Scottish Gallery’, with the firm also spending time on George Street.

Nearly 175 years after it was founded, the gallery is best-known as the home of the ‘Scottish Colourists’, a group of four artists

– Francis Campbell Boileau Cadell, John Duncan Fergusson, George Leslie Hunter and Samuel John Peploe – whose work in the early decades of the 20th century earned them their reputation as arguably Scotland’s most celebrated painters. Their movement is closely associated with the gallery, which exhibited their work right from the very beginning.

There’s a family connection too. Guy Peploe, who stood down this spring after 33 years as managing director, is SJ Peploe’s grandson

and the son of artist Denis Peploe.

Stepping into his shoes is Christina Jansen, who joined the gallery in 1997 and has served as a director since 2008 – and who is also married to Guy. “Ironically, it wasn’t Guy who hired me,” laughs Jansen. “It was one of the previous directors who wanted me to work here because no one else in Scotland at that point had enough experience of working with objects.

“Guy and I got together as a couple 18 years ago and we got married last year, but we’ve kept our separate names. He’s successfully managed the business for 33 years. Guy has a lovely style. He’s old Edinburgh. He’s very much part of the establishment. I’ve been his ‘righthand man’ – but we have very different styles and approaches.

“Guy is still very much an important part of

this business. I’ve still got a huge amount to learn from him. His is an encyclopaedic knowledge of art and in particular the Scottish Colourists and Scottish art in general. His knowledge comes across as effortless.

“He’s stepped down to develop the Scottish Colourists Foundation, which will be complementary to the business but will be a separate non-commercial entity. He’s not looking over my shoulder though – he lets me get on with running the business.”

Part of that contrast in styles comes from their differing routes into the world of art. “I look and I sound Scottish, but I was born in Germany and have a German name,” explains Jansen.

“I’m also one of these strange types who’s been brought up from the age of two on both the West Coast and the East Coast – and, for a lot of Scots, that’s often more puzzling than being half-German.”

She remembers falling in love with art when her mother took her to London when she was 11 to visit the National Galleries. “The picture that really stuck in my mind was ‘The Ambassadors’

by Hans Holbein the Younger,” she says. “I still find Holbein an extraordinary person and talent – there’s a touch of witchcraft in his work. If there’s a Holbein painting on display then the portrait will follow you around the room.”

Jansen chose to study industrial design at Manchester Metropolitan University, but turned down the offers of two apprenticeships and instead headed to London to work in the press office at what was then the Tate Gallery, now Tate Britain. “I lucked out because I was working there in 1995 when Damien Hirst won the Turner Prize for his cow and calf in formaldehyde, which was going on show at the Tate. I was beginning to see how the whole art market functioned, even though I was just stuffing envelopes.”

From the Tate, she headed to the Victoria & Albert Museum, where she worked for the Crafts Council, before completing her master’s degree in the decorative arts at the University of Glasgow. Her dual training in both industrial and decorative arts and her experience in London led her to The Scottish Gallery, initially to cover a two-year sabbatical for one of the directors.

“That’s where I had an advantage – my initial background had been in selling objects in contemporary applied arts, which are luxury, non-essential items and it’s brutal training because they require a huge amount of work to market and sell,” she says. After her initial contract ended, Jansen spent a couple of years working in events production, doing stage and lighting design, while still keeping in touch by carrying out project work for the gallery.

Jansen has been the driving force behind streamlining the business’s operations, moving from separate departments into a simpler system. “The Scottish Gallery is an early model of a department store,” she says. “We started off as gilders and restorers and then people wanted to get their artwork framed. People also wanted to buy prints. Then artists came in and wanted to buy art materials. The artists also wanted to rent a room as a studio and if they could buy their art materials here and frame their work here, then could they sell their work here too? The gallery grew by demand.”

Understanding the gallery’s history and its evolution is clearly very important to Jansen. She points to various examples of how the business has weathered economic storms – from the First World War to the Great Depression and onward through the Second World War – and has clearly studied how previous managing directors have steered the company through troubled times.

Learning lessons from history helped The Scottish Gallery to weather the global financial

crisis. The company has made a profit each year since 1994, with the exception of 2010. During the past financial year, the gallery sold £2.3 million-worth of goods, bringing in revenues of £1.3m and allowing it to make a pre-tax profit of £165,000, which in turn led to a £47,300 dividend for its 29 shareholders.

The gallery’s shareholder register at Companies House reads like a Who’s Who of Edinburgh society, including former BQ Scotland cover stars Sir Jack Stewart-Clark and Chris Tiso.

Its chairman, Will Whitehorn, is the former president of space tourism outfit Virgin Galactic and current chairman of the Scottish Exhibition & Conference Centre (SECC) and vice-chair of London-listed bus and train operator Stagecoach.

“After the financial crisis, the contemporary art market disappeared overnight,” Jansen remembers. “The UK became ultra-conservative, so post-war art became popular, and people returned to the Scottish Colourists too.

“It was very difficult for us to maintain midcareer and younger contemporary artists. There were lots of artists who were doing very well but they tended to be more-established artists with years of experience under their belts – they were a safe bet. No one wanted to celebrate the period of time around the financial crash, so it was very difficult for contemporary artists.

“Our strapline is ‘Contemporary art since 1842’. We have to keep all of these things in balance. Contemporary art is at the heart of what we do.”

Balance is a word that turns up many times in conversation with Jansen: the balance between contemporary art and historic pieces; the balance between making material available online for customers while still producing the high-quality sales catalogues and other publications for which the gallery is well known;

INTERVIEW bqlive.co.uk

and the balance in the triangular relationship between the gallery, its artists and its clients.

Like a butterfly in a meadow, she flits between topics of conversation, with a question about her role as managing director leading into an enjoyable detour about an artist who has recently exhibited on Dundas Street and then onto an Australian customer who came in with a ‘shopping list’ of items they had compiled using the gallery’s website.

And like any good managing director, she recognises that the artists and the clients are not simply people who she does business with, but can also be people who can help grow and enrich the company. She explains that going to an artist’s studio to speak to them about their latest work can lead into conversations about other artists, while going to hang a painting in a customer’s house can expose staff to previouslyunknown artists or objects.

“What’s my day like? It’s pretty varied. It’s about trying to fit in everything and trying to be here on the shop floor, saying hello to people.

And detail. No matter what it is – whether it’s working in banking or working in a gallery – it’s all about detail.

“When people think you just sit there and polish your nails behind your desk in the gallery and they say ‘Isn’t this a nice place to work’ then I take that as a compliment because we don’t want anyone to feel the stress that sometimes goes on behind-the-scenes. We have a very hard working staff and I’m aware of that because I’ve worked my own way up from the shop floor.

“I don’t like being divorced from the shop floor.

If you lose personal contact with the people coming through your door then I think that’s

really bad – but that’s becoming more and more of a struggle to maintain that personal contact.

I’m the person really cracking the whip. We have a high quality, phenomenal timetable of art and you can’t ever let that slip.”

That attention to detail includes looking out for what’s coming next over the horizon. She points to the trend for young people to engage with art through their computer screens or tablets or mobile phones instead of going to see pictures in a gallery.

“Take photography for example: everyone has a camera on their iPhone now so they think

“If you lose personal contact with the people coming through your door then I think that’s really bad – but that’s becoming more and more of a struggle to maintain that personal contact” they’re a photographer and so the whole market has been hit really hard,” she says. “Filming is another. It takes a big personality or a very skilled individual now to make it in those areas where everyone thinks they’re a master.

“We get asked more and more often now ‘Who funds you?’ – I find that slightly depressing. We are the masters of our own fortune. There’s no safety net for us. That’s what makes us good, actually – being a little bit scared because we don’t know what’s going to happen next, we take nothing for granted. It’s a business that’s

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like gambling – it’s 100% risk. But our expertise has been developed over a long period of time and we also use external expertise where appropriate, and that’s how we keep going.

“That’s what we do. We really love art. We understand art. It’s not something you can possess. You have to respect it. For us, it’s not just stuff for sale, despite the fact that all our livelihoods depend on selling art.

“We just don’t know what the younger generation will think. Will they think that an art gallery is a worthwhile experience, is it relevant?

That’s the problem we face.”

While the philosophical questions over the future of art galleries in general remain to be answered, Jansen has taken the bull by the horns and is in full control of two more immediate challenges. She is renovating the gallery’s main premises on Dundas Street and is creating a second private gallery space in the heart of the New Town, which will allow the firm to show pictures to clients in a more private setting and will also provide space for Guy’s foundation.

“We’re like a Tardis – we’re a much bigger gallery than you think,” Jansen laughs.

“Often it’s like Piccadilly Circus in here.

We’re a popular gallery and I will never complain about that because that’s testament to us still being relevant.

“Clearly we have a lot of art on the walls here during an exhibition but that’s just the tip of the iceberg. Even with all of this space, people think we have hidden gems squirreled away – and in fact we do. Having an additional space means we’ll be able to show more art or bespoke projects.” n

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KNOWLEDGE EXCHANGE AWARDS Media Partnership

Big names from the worlds of business and academia have signed up as speakers and workshop leaders for the Scottish Knowledge Exchange Awards, which will be presented as part of a showcase and celebration on 21 February 2017 at Royal Bank of Scotland’s (RBS’s) Gogarburn head office in Edinburgh.

The keynote speaker will be Brigadier David Allfrey, chief executive and producer of the Royal Edinburgh Military Tattoo, while a panel discussion of previous winners will feature Martin Ruck, head of research and development at Aberdeenshire-based ingredients maker Macphie, and John Fuller, president and chief executive of materials handling supplier LoadFast Systems.

Speakers at this year’s inaugural event included: BQ Scotland cover stars Fiona and Magnus Houston, the directors of Inverness-based national seafood subscription service Fishbox, who have worked on the software that underpins their business with mathematicians at the University of

Reaping the rewards of collaboration As the judges consider the entries for the 2017 Scottish Knowledge Exchange Awards, Interface begins to unveil the speakers for the accompanying showcase and celebration

KNOWLEDGE EXCHANGE AWARDS Media Partnership

Stirling; and staff from Timespan, a museum and arts centre at Helmsdale in Sutherland, which has worked with academics from the University of St Andrews on virtual reality displays to bring its site to life for visitors.

Entries for the 2017 competition closed on 2 December and the shortlist is due to be announced at the end of January. The awards are organised by Interface, the organisation that acts as a matchmaker for businesses that want to collaborate with Scotland’s universities.

Companies supported by Interface inject an estimated £70m into the economy each year through their partnerships with academics.

Next year’s finalists have some hard acts to follow.

The winners at this year’s event included Payfont and Edinburgh Napier University, which scooped the innovation of the year award for together developing a ‘100% secure’ cloud computingbased architecture. The sustained partnership prize went to Glasgow-based solar thermal business Soltropy and Heriot-Watt University in Edinburgh, which started collaborating in 2013, leading to the development of a mass-produced, easy-to-handle, modular solar thermal panel aimed at the UK and European markets.

Two multi-party collaboration awards were handed out this year – one to the Stratified Medicine Scotland Innovation Centre, which is hosted by the University of Glasgow at the Queen Elizabeth University Hospital, and the other to the University of Strathclyde’s Technology & Innovation Centre (TIC) for its low-carbon power and energy programme, which has generated projects worth nearly £2.6m.

Laura Kreiling, a knowledge transfer partnership (KTP) associate from the University of Strathclyde, who undertook a 24-month project to significantly-improved engineering resource estimation at Falkirk-based bus builder Alexander Dennis, received the building skills award.

Steve Beaumont, former vice-principal for research and enterprise at the University of Glasgow, was presented with the outstanding contribution to knowledge exchange award.

Beaumont was involved in the launch of Kelvin Nanotechnology, Compound Semiconductor Technology and the Glasgow Knowledge Exchange Fund, which aims to encourage and facilitate knowledge exchange activities throughout the University of Glasgow. He left his role as vice-principal in 2013 and is now the academic lead for Censis, the innovation centre for sensor and imaging systems.

“Universities are committed to making their knowledge, expertise and facilities have an impact in the world and working with businesses and other organisations on innovation is one of the ways they can do that,” explains Alastair Sim, director of Universities Scotland, the body that represents Scotland’s 19 higher education institutions. “Interface has been at the heart of creating many hundreds of innovative connections between business and academia and is a much-valued partner to the higher education sector. “The outcomes from previous winners are impressive; new products and processes are created, businesses grow and expand into new markets, additional funding and investment is leveraged and universities learn so much from the process. I look forward to being inspired, once again, by this year’s winners.”

Stuart Fancey, director of research and innovation at the Scottish Funding Council, the body that provides public money to universities, adds: “Innovation is vital to the future of Scotland and collaborations between academics and businesses are an essential part of that. The Scottish Knowledge Exchange Awards are a fantastic way to recognise and reward these partnerships and achievements.” Following the success of this year’s [2016] event, RBS will again host the showcase and celebration at the conference centre in its global head office at Gogarburn on the outskirts of Edinburgh.

“We look forward to welcoming the applicants to the awards showcase and ceremony in February,” says Susan Fouquier, RBS’s managing director for business banking in Scotland. “We are delighted to once again support the Scottish Knowledge Exchange Awards.

“It offers a fantastic opportunity to showcase the great work being carried out here by the country’s academic and business communities. It is a real boost and inspiration to the organisations operating here and brings to light the need for strong relationships between the public and private sectors and the need for creating an ecosystem which allows companies to flourish.

“Thanks to our support of accelerator hubs such as Entrepreneurial Spark and the development of our own nationwide network of business growth enablers, we understand the importance of such frameworks and why support at all levels is crucial for businesses to grow.” n For details of the Scottish Knowledge Exchange Awards, visit www.interface-online.org.uk/events/ scottish-knowledge-exchange-awards-2017

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The awards categories INNOVATION OF THE YEAR For an innovative product, process or service that has been developed over the past three years.

Finalists will consist of businesses that have been supported through the Interface and Interface Food & Drink brokerage service or via the Scottish Funding Council’s innovation voucher programme or Interface food and drink funding.

SUSTAINED PARTNERSHIP For a collaboration between an academic team and a business that has demonstrated long-term partnering and benefits to both the business and the academic teams through knowledge exchange.

MULTI-PARTY COLLABORATION This award is open to groups and consortia involving three or more parties working together on an innovative research project and include a research partner from Scottish academia and at least one business.

BUILDING SKILLS THROUGH KNOWLEDGE EXCHANGE This award is open to postgraduate students or knowledge transfer partnership (KTP) associates who have been hosted or sponsored by businesses based in Scotland for a specific project that has led to increased innovation within the company as well as increasing the skills of the individual student or associate.

OUTSTANDING CONTRIBUTION TO KNOWLEDGE EXCHANGE Recognising an individual in academia, business or a business support organisation who has made an outstanding contribution and played a pivotal role in the promotion of knowledge exchange within Scotland.

CADENHEAD ON WINE bqlive.co.uk

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Not just following the herd Serial entrepreneur Lynne Cadenhead visits Valhalla’s Goat in Glasgow to enjoy one of her favourite whites and to expand her new-found passion for reds

Viognier is a wee bit like Marmite – you either love it or you hate it. Its peachy flavours and its waxy feeling in your mouth don’t suit everyone, but I’m a huge fan of this under-rated white grape.

The variety’s spiritual home is in the village of Condrieu in the Rhone Valley in the South of France, but Viognier has undergone something of a renaissance over the past few years and it’s now springing up around the world, from Australia all the way through to California.

I first tried Viognier down at Turnberry a few years ago and I was absolutely smitten, so I was really excited when one of the bottles I was asked to review from the Valhalla’s Goat bottle shop on Great Western Road in Glasgow was the Yves Cuilleron Viognier.

It was just perfect – really peachy flavours but with plenty of acidity to balance the fruit and leave you with a refreshing taste in your mouth. The wine is organic and comes from the Rhone Valley, although it’s labelled as “Collines Rhodaniennes”, which means it’s one of the French wine regions, rather than from a specific appellation. I first fell in love with white wines about 25 years ago when we were living in Horsham in West Sussex, down on the south coast of England. We used to take the ferry over to France and would spend days exploring the countryside – and the wine too.

As well as Viognier, I developed a taste for Champagne and so I’m really looking forward to cracking open a bottle of Cristal on Hogmanay to celebrate my 50th birthday. It was a special gift and I can’t wait to enjoy it.

My other confession is my love of dessert wine. I know it’s not to everyone’s taste, but if I could choose my last meal on Earth then it would be sitting on a boat on the West Coast drinking a sweet wine made from botrytised

grapes along with a piece of gorgonzola cheese from I J Mellis the cheesemonger. Bliss.

While I’ve had a long-running love affair with white wine, it’s only in the past few years that I’ve really started enjoying reds. The staff at Valhalla’s Goat told me that – as you get older – you start to lose some of your bitter taste buds and so you start to enjoy different flavours, like olives and red wines.

I used to find red wines too tannic – the tannin would make me suck in my cheeks like a really strong cup of tea and leave a very dry sensation in my mouth. But the bottle of Perez Cruz Cot from Chile didn’t do that – the tannins were very soft.

It was really smooth and deep and rich – my husband jokes that I’m “only a baby” when it comes to red wines and so he made sure he enjoyed the lion’s share of the bottle. But even my beginner’s palate could tell that this wine was a lot more approachable than many dry reds.

Cot comes from the South of France and is now better known as Malbec, which has become incredibly popular in Argentina and, it turns out, is making a splash across the border in Chile too. It’s a great match for steak and its softer tannins appeal to a lot of people who find traditional varieties like Cabernet Sauvignon or Shiraz just too tannic. n Lynne Cadenhead is chief executive at Bio ID Security and chair of Women’s Enterprise Scotland.

Thank you to Valhalla’s Goat, 449 Great Western Road, Glasgow, G12 8HH, 0141 337 3441, for providing the Yves Cuilleron Viognier 2014 (£18) and the Perez Cruz Cot Limited Edition 2013 (£18).

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MOTORING bqlive.co.uk

I’ve always been competitive – with an elder sister and a younger brother, it’s hard not to be.

When we were young, one of the places where that competition would take shape was on the go-carting track, which our Dad thought would be a good introduction to driving before we were let loose on the roads.

That competitive streak has carried on into adulthood: me and my brother love going to track days and experience days and getting our hands on whatever cars we can drive. But, after test driving the new Aston Martin DB11, I think I might just have edged a few points ahead of him. I haven’t stopped grinning since I stepped out of the car. Having driven a range of Audis and BMWs over the years as company cars, it always feels special to sit behind the wheel of a supercar.

The test drive day didn’t start with a grin though. Standing next to the DB11, it’s hard not to feel nervous.

It looks like a “big” car; it’s broad, it’s muscular and it looks like it means business. The V12 badges remind you that this is the mostpowerful production car Aston Martin has created, with 600 horse power coming from its 5.2-litre engine.

Despite having driven the Aston Martin DB9 – along with Ferraris, Lamborghinis, Caterhams and even the Ariel Atom – I could still feel the hairs on the back of my neck standing on end as I slipped into the driver’s seat, desperate not

Let’s make some noise Jonathan Payne, managing director at independent jewellery firm Laing Edinburgh, is blown away by the beautiful symphony of sounds created by the new Aston Martin DB11

“After those first five minutes, the nerves just evaporated. This may be a supercar, but this is a supercar that you could live with every single day of the year�

MOTORING bqlive.co.uk

to prang this beautiful car. Only a fool wouldn’t treat a vehicle this powerful with respect, especially in the wet. I needn’t have worried though. The staff at Aston Martin Edinburgh were great – they took me for a spin around the block to ease my nerves and then left me to it, letting me roam through Edinburgh and the Borders to get a good mix of town driving and open road. After those first five minutes, the nerves just evaporated. This may be a supercar, but this is a supercar that you could live with every single day of the year. The technology inside the car is lightyears ahead of the DB9. The grip was incredible – even in the wet, the car felt sure-footed and clung to the road.

And the power was phenomenal. On the open road, the DB11 lived up to all the hype, putting that grin on my face and fixing it there for the rest of the day, the week, the month.

What really struck me was the noise, especially when I moved from the “grand tourer” (GT) setting through “sport” and onto “sport plus”.

It was an epic sound. It was so special that I had to make a recording of it on my phone so that I could treasure it.

While it might be a supercar on the open road, the DB11 was docile enough in the town that I think it could quite comfortably become a car that you could use every day. The vehicle is

covered in cameras, which make parking such a wide car a piece of cake, allowing you to avoid scuffing the wheels on the curb.

We even took the car shopping – my wife wanted to pop into Marks & Spencer on the way back to the garage – and, sitting in the car park, I noticed how everyone slowed down as they strolled past, eager to get a look at its gorgeous lines. It was the same cruising through town – pedestrians, bus passengers, other drivers, everyone stopped and looked at the car.

It may be a luxury car, but the DB11 has that same magical quality as a Rolex watch. Some luxury items come with a health warning – don’t do this with them or don’t do that with them.

But you can wear a Rolex watch every day, you can swim in it, you can play squash in it, and it doesn’t make it any less special.

It’s the same with the Aston Martin – you could drive it every day, you don’t have to lock it away in your garage and only bring it out on dry summer’s days. That’s a very special combination of luxury and practicality.

Despite a day spent glued to the driver’s seat, I had no aches or pains after hours on the road.

The seats were comfortable and the dashboard was simple and straightforward.

If I had one gripe about the car, it would be the central console, with its satellite navigation,

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media player and other gizmos. I only had a day with the car, but I ended up switching off a lot of the electronic wizardry on the centre console – it just wasn’t intuitive enough for me.

I’m sure I’d get the hang of it if I sat down and learned how to operate all the toys, but for the test drive it was just easier to switch them off and concentrate on the road. In contrast, the dashboard was easy to follow and didn’t distract from the driving.

You can’t take an Aston Martin out for a spin and not mention James Bond. When I found out that I would be driving a DB11, all the images from the old films started flashing through my mind – along with the fantastic Aston Martin DB10 concept car built for the film Spectre.

When I was handed the keys, I did feel a tingle and – just for a brief moment – imagined myself as 007. But just for a moment, I promise. That’s because the DB11 is more than simply a supercar from the silver screen.

It exceeded all my expectations, especially with that beautiful noise. n Thank you to Aston Martin Edinburgh, Bankhead Drive, EH11 4DJ, for providing the Aston Martin DB11 for the test drive.

Prices start from £157,900. Call 0131 442 2800 for more details about 2017 delivery.

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TRAVEL bqlive.co.uk

“As a drinks writer, I get stupidly excited by the sight of a wine list and so I was in my element when I spotted that the bin numbers on 21212’s drinks menu were spiralling up towards 1,000”

Cracking the code 21212 in Edinburgh takes the concept of a restaurant with rooms and elevates it to a whole new level, as BQ Scotland editor Peter Ranscombe finds out Whisper it – there’s a secret code for exciting food in Edinburgh. And it goes: 2-1-2-1-2.

And no, it’s not the security code for the back door of that takeaway on St Andrew’s Square.

It’s the name of Paul Kitching’s Michelin-starred restaurant on Royal Terrace, perched on the approach to Calton Hill.

Kitching and his partner, Katie O’Brien, opened 21212 in May 2009, picking up their Michelin star the following year and scooping the additional accolade of four rosettes from the AA in 2011. High praise indeed, but in a town that boasts three other chefs with Michelin stars – Tom Kitchin and Martin Wishart with their eponymous eateries alongside executive chef Jeff Bland at Number One at the Balmoral – Edinburgh’s cooks need to have another trick up their sleeves.

What sets 21212 apart is that it’s a ‘restaurant with rooms’, that classic designation for dining rooms that aren’t quite hotels but can still put

their guests up for the night. And there are four of those rooms to be precise.

Located in a Grade-A listed Georgian townhouse, 21212 is spread over four levels, with the dining room on the ground floor and the bedrooms spread out over the storeys above. The main restaurant can seat 38 people, with space for more in two private dining rooms. There’s something magical about watching chefs at work – a flick of the wrist to toss ingredients in a frying pan, a swirl of a spoon to mix together a sauce, or a roll of a knife to separate vegetables from their stems.

The glass partition that separates the diners from the chefs at 21212 allows customers to feel like they’re part of the action.

Seeing Kitching and his team at work was like watching a surgeon performing in an operating theatre. Once an order was read out, his brigade of chefs would turn from their stations around the edge of the kitchen to gather at the

workspace in the centre of the room, easing their saucepans on and off the hot plate and assembling their dishes ready for the pass.

At one stage I counted ten bodies at work in the throng. Perhaps Kitching is more like a conductor leading an orchestra than a surgeon in an operating theatre?

Either way, the food that passed through the glass partition and into the dining room was exciting. My hostess for the evening explained that Kitching creates his dishes by drawing pictures instead of writing lists of ingredients and that raw creativity shines through in the presentation of his plates.

His amuse-bouche for the evening consisted of a tomato and garlic gazpacho soup with puy lentils and couscous, served over a sweetcorn puree and finished with a horseradish foam and a wholegrain mustard crisp. Aside from the intriguing nature of the foam and crisp projecting from the top of the tiny mug, what

TRAVEL bqlive.co.uk

struck me about the dish was the intensity of the flavours – the wholegrain mustard shard was tremendous. That intensity of flavour continued through the rest of the five-course meal. For my starter, I opted for ‘autumn duck ragout’, which consisted of slices of duck breast served with exotic mushrooms, cashews, sultanas and mozzarella cheese, alongside a bonbon of leg meat. The flavours were delicious, but it was the mixture of textures – dried mushroom, pan-fried mushroom, mushroom gel – that brought the dish alive for me. Soft duck, crunchy nuts, and a crisp bonbon caught my attention.

A mushroom soup was accompanied with a foam and a medley of fresh vegetables, served in a wide and low bowl, again presenting a mixture of textures. The bread for the evening was white and contained goji berries, adding a sweetness to the soft crumb.

Kitching’s descriptions of his dishes don’t give much away – the menu consists of a title for each plate, followed by three lines of ingredients. So ‘Corned (beef fillet) pie’ aroused my curiosity.

Tender fillet steak, a slither of puff pastry and a chunk of oily chorizo. Warm rather than hot, but still ticking all the right boxes.

To finish, I picked ‘A pear of strawberries’, which materialised as a moreish fruit trifle accompanied by a wedge of flaky shortbread.

Heaven.

As a drinks writer, I get stupidly excited by the sight of a wine list and so I was in my element when I spotted that the bin numbers on 21212’s drinks menu were spiralling up towards 1,000.

With duck, beef and mushrooms all jostling for my attention, I plumped for number 600, an old reliable option – pinot noir.

August Kesseler’s ‘N’ Pinot Noir from the Rheingau region of Germany went down a treat. At £56 a bottle, it’s not cheap, but it lived up to expectations, combining concentrated strawberry and cranberry red berry fruit flavours, with wood smoke aromas and enough fresh acidity to cut through the sauces.

Diners are given a choice between three dishes for their starter, main course and pudding, with a set soup course and cheese also available. One

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dish on each of the three parts of the menu changes each week, producing a whole new line-up every 21 days.

And so to bed. Each of the four rooms is individually decorated. My chamber consisted of a massive super king-sized bed and a crazilycomfortable sofa. The bathroom contained not only his-and-her’s sinks but also a standalone shower that was easily big enough for three people and probably the largest freestanding egg-shaped bath that I’ve ever seen.

Two small gripes. It’s a long way up the stairs without a lift – though that’s a harsh criticism given that it’s a Grade-A listed building.

Despite the modern interior, there was a very old-fashion sounding monster in the waterpipes when the central heating fired up in the early hours. But the rude awakening did have a silver lining – it meant I was raring to go by the time breakfast was served.

The texture-fest of the night before continued with a the most amazing homemade muesli, while diners were also treated to a choice of three hot dishes to follow. n

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PROFILE Transmit Start-ups

Edinburgh entrepreneur makes even the most hands-on of businesses accessible anywhere Chris Kennelly’s frustration with appointment waiting times and the lack of instant accessibility for patients to see professional clinicians has led him to solve the problem himself and start his own business.

Chris’s business, Jim Jam, is the first digital physiotherapy service that allows patients to have private appointments via video link seven days a week.

Rather than wait 10-12 weeks for a face-to-face appointment at a local clinic, patients can register online, giving details of their ailment and booking an appointment at a time that suits them. A network

of chartered physiotherapists can then be connected with patients to give a diagnosis and evidence-based exercise subscription.

Founder Chris Kennelly believes the newly-launched service will meet a growing demand for flexible appointments and free up time for the burdened NHS. The service will also be available to those abroad needing fast advice.

Through a loan from Government Start Up Loans delivery partner Transmit Start-Ups, Chris was able to get his business idea up and running quickly, with funds used to develop and launch the business’s website and virtual clinic, jimj.am.

Commenting on the launch of the business, CEO Chris Kennelly says: “It has been proven that fast diagnosis and treatment of problems can prevent a temporary issue becoming a more permanent problem. Our service is about lowering the barriers to treatment, while providing a service that is time and cost-effective as well as clinically-effective.

“It’s about time we got creative with the way we deliver professional services, and we have proven that technology can be used to improve access to even the most hands-on professions.”

Richard Myers, Commercial Director at Start Up Loan delivery partner, Transmit Start-Ups, says: “You don’t always need a brand-new product or service idea to start a business. In Chris’s case, he has innovated the way an applied service like physiotherapy can be delivered.

“Sometimes, after working in a profession you can spot an opportunity to make that service that little bit better, or get the chance to deliver something different. We are approached with different ideas from aspiring entrepreneurs and new business owners across Scotland every day and it is amazing to be able to make so many of these dreams and ideas become a reality.”

For more information, visit www.transmitstartups.co.uk.

INTERNATIONAL TRADE In association with:

SPECIAL FEATURE

Growing through exports HSBC’s Alison McGregor highlights Scotland’s successes

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INTERNATIONAL TRADE bqlive.co.uk

BUSINESS UPDATE

Quality: Best Scottish beef and seafood

‘Surf and turf’ in Macau

Copylab expands into Canada

Success in Bangkok

Chefs in Macau, one of China’s richest cities, were given the chance to taste Scotch beef and Scottish seafood at a pioneering dinner.

Trade bodies Quality Meat Scotland (QMS) and Seafood Scotland joined forces to present a ‘surf and turf’ menu featuring Scotland’s best fresh and smoked salmon, smoked haddock, langoustine, scallops and oysters alongside Scotch beef, which carries the European Union’s protected geographical indication (PGI) designation. Laurent Vernet, head of marketing at QMS, who spoke at the dinner, said: “This market is important as it allows Scotland to diversify its trade portfolio outside the Eurozone and towards countries that offer encouraging growth potential. Consumers in these markets have a genuine appetite for quality Scotch beef and its world-leading levels of traceability, assurance and welfare standards.”

Natalie Bell, trade marketing manager for Europe, the Middle East and Asia at Seafood Scotland, added: “As a thriving centre of industry and tourism, Macau has a high concentration of discerning foodies – making it an ideal location to showcase the best of Scotland. For the first time, Scottish seafood and beef are being staged together, a natural step in achieving our common goal – to increase Scotland’s export potential.”

Hot on the heels of its expansion into Asia, investment writing firm Copylab has opened a Canadian operation in Vancouver.

The new office will be run by vice president James McKeough, who joins the Glasgow-based company from Pavilion Global Markets.

McKeough was previously a research analyst at HSBC Asset Management and founded Onward Capital. Ross Hunter, founder and chief executive at Copylab said: “This is another important milestone in our international strategy, which is driven by the demands of our asset management clients.

“James is a renowned investment communications talent.

“We are now able to expand our capabilities to support growing demand from the North American market, offering a truly holistic suite of communications services for investment companies.”

He added: “As globalisation becomes an increasingly prominent theme in the investment industry, our worldwide reach will further reinforce Copylab’s ability to support the multinational asset managers we work with.”

Copylab also has offices in Boston, Edinburgh, Hong Kong, London and Singapore and employs more than 50 people.

Cathcart Associates, an Edinburgh-based information technology (IT) recruitment firm, has hailed the success of its first year in the Thai market. The company said it was the first British IT recruitment firm to open a branch in Bangkok and has since doubled its headcount in the Thai capital. Managing director Gordon Kaye told BQ: “We are delighted with the progress our Thai office has made in just one year. We have always wanted to take our services international and with its diverse tech scene, Bangkok seemed like the best place for us to successfully do this.” He added: “The leap to open an office in South East Asia required a lot of hard work, dedication and commitment and much time has been spent researching the market in Bangkok, on top of establishing links with companies and potential candidates.

“We are determined to ensure that we offer the same quality recruitment services in Thailand that we do in the UK and we are confident that with a strong team in place, we can do this.”

Aircraft centre opens at Prestwick Prestwick airport near Glasgow has been chosen to host Manchester-based Chevron Aircraft Maintenance’s centre of excellence for aircraft engineering, maintenance and training.

INTERNATIONAL TRADE bqlive.co.uk

The £8.5m centre will create up to 82 jobs, including 67 posts described as “highly specialised and skilled positions”.

Chevron received a £2m regional selective assistance (RSA) grant from Scottish Enterprise to support the opening of the centre, which will become fully operational next year.

The company expects to increase its turnover from £9.6m this year to £19m by 2021.

Neil Morris, Chevron’s managing director, said: “This is a very important project to us and we have greatly valued the support we have received from Scottish Enterprise in helping us achieve this investment.

“The airport is in an excellent location at the midway point of the ‘great circle route’, making it a convenient stop off point for the many aircraft that have existing flight planning over the airport.

“The facility will enable the Chevron Group to handle a large range of aircraft and we hope that we can offer additional benefits to Glasgow Prestwick’s existing customer base across passenger, cargo, military, executive and general aviation, including training.”

170 jobs for Glasgow American sales and marketing company Televerde is to create 170 jobs in Glasgow after choosing the city as the home of its first European office.

The company plans to employ 130 multilingual staff in the office, covering languages such as French, German, Italian, Spanish and Portuguese, as well as Scandinavian and Eastern European tongues.

Televerde received a £670,000 regional selective assistance (RSA) grant from Scottish Enterprise to open the office in Glasgow and also received support from Scottish Development International (SDI), the economic development agency’s overseas arm.

James Hooker, chief executive at Televerde, said: “There is a tremendous opportunity for us to bring our 21 years of experience to help companies generate more demand and drive greater revenue by leveraging marketing technology and integrated teleservices.

“European companies are aggressively expanding their marketing technology and sales development resources.

“We believe we are expanding our presence

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Blending Scotland and India Fusion Whisky, the Edinburgh-based premium drinks brand, has created The Kincardine, a seven-year-old blended malt whisky, by mixing single malts from the Glen Elgin and Macallan distilleries in Scotland and the Amrut distillery at Bangalore in India.

The whisky was named after Victor Bruce, the 9th Earl of Elgin and 13th Earl of Kincardine, who served as viceroy and governor general of India between 1894 and 1899.

The blend was concocted by Victor’s great-grandson Alex Bruce, master blender and managing director of Adelphi Distillery.

The Kincardine is Fusion Whisky’s follow-up to The Glover, a whisky created by blending Scotch and Japanese whiskies to honour Thomas Glover, the Scot who helped to modernise Japan during the 19th century.

David Moore, a director of Fusion Whisky, said: “The concept of using fusion whisky to celebrate the historic ties between Scotland and so many countries around the globe is something we pioneered with The Glover.

“This innovation was so successful – selling out almost immediately and exporting to 15 countries – it was always our ambition to create another fusion whisky.

“With Alex’s personal connections to Amrut distillery, as well as the story of his greatgrandfather, it was clear we had an excellent opportunity to create another unique and ground-breaking whisky.”

in Europe at an important time when we can not only help companies expand across Europe, but also help European companies enter the Americas.

“The team we have initially built in Glasgow is extremely impressive and we look forward to continuing our expansion and building out our team.”

“European companies are aggressively expanding their marketing technology and sales development resources”

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INTERNATIONAL TRADE bqlive.co.uk

Alison McGregor, chief executive at HSBC Scotland, shares some success stories from Scottish exporters and examines what needs to be done to help more companies to trade internationally

Exporting for growth A recent HSBC survey, entitled ‘Exporting for Growth: the SME Perspective’, found that 73% of would-be exporters feel held back by a lack of international business experience and knowledge. Of the companies surveyed, only 45% factored overseas trade into the growth of their business.

The report questioned more than 1,000 UK small and medium-sized enterprises (SMEs) – some already exporting and some planning to start – about their experiences, views and concerns amid a landscape of uncertainty following the European Union (EU) referendum.

In this wake of uncertainty, we have seen SMEs act with caution. According to the survey, the impact of Brexit and Scotland’s place in these negotiations is one of the main contributing factors to Scottish SMEs’ hesitancy to export.

The findings show that SMEs believe that this, combined with limited understanding of local markets and navigation of regulations, has a significant impact on the decision of a business to enter overseas markets.

However, in times of economic uncertainty, growth is critical to the survival of a business and exporting products or services presents some of the most compelling opportunities to expand a business. For example, in 2008, when businesses and exporting suffered following the financial crisis, most firms went into survival mode, retrenching into their core markets and focusing on revenue generation and cost savings.

However, even in those difficult times, some companies had the bravery, cash reserves or foresight to expand beyond borders. In many

of those cases these were the ones to achieve growth throughout the downturn.

International business can seem complex. Our research shows that would-be exporters can be discouraged from international trade as they believe their product or service is not suitable for export. However, Scottish brands are loved and respected around the world for their quality and innovation.

For example, PureMalt Products based at Haddington in East Lothian is a specialist manufacturer supplying more than 50 countries worldwide. Operating from an 800-year-old mill roasting 6,000 tonnes of malt each year, the company’s malt extract forms a key ingredient in 1,400 branded product lines.

Moving from malt to confectionary, Larbertbased Mrs Tilly’s exports its premium products

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as far afield as France, Germany, Switzerland, Canada and the United States. The business was established in 1997 and since then the specialist fudge, tablet and macaroon maker has gone from strength–to-strength in both domestic and international markets.

Following a successful year of sales, a £1.6 million financial package from the bank and a number of new listings with major retailers, Mrs Tilly’s will continue to implement a growth strategy both at home and abroad.

The confectioner works closely with Scottish Enterprise, Scottish Development International and Scotland Food & Drink to develop the right strategies in the right international markets after the company invested in new machinery and staff to provide the infrastructure for growth.

Scotland is renowned for its rich heritage in quality food and drink production and PureMalt and Mrs Tilly’s not only cement this reputation but exemplify the diversity of products and businesses contributing to the success of this sector.

Another example of a Scottish success story is Mabbett, a Glasgow-based business recognised as one of the leading independent environmental, engineering, health and safety, and energy-sustainability consultancies in the UK, Ireland and Europe. The company operates across multiple industries including aerospace, public sector, manufacturing, construction and energy with clients including General Electric, the World Bank, Raytheon, Diageo, National Health Service (NHS) Scotland, and Scottish Water. As an ambitious SME, Mabbett already has a foothold in the European marketplace but has identified Europe as a key marketplace for growth. As part of the company’s 2020 business plan, Mabbett has employed an aggressive growth agenda to further expand in Europe and the UK by diversifying the business and creating Mabbett Environmental Planning. The new enterprise will facilitate the firm’s expansion specifically in the UK’s environmental planning services sector, growing the business’s expertise and market share.

However, for Scottish businesses, ‘exporting’ as close to home as England can provide significant expansion and entry to new markets. Take Inverness-based Coast & Glen, for example.

Former BQ Scotland cover star Magnus Houston established the business in 2011 after an unfortunate accident put an end to his

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“In times of economic uncertainty, growth is critical to the survival of a business and exporting products or services presents some of the most compelling opportunities to expand a business”

motorcycling career.

Houston set-up Coast & Glen after joining a friend on a trawler boat to initially supply quality fish from the Highlands and islands to local restaurants. Tired of the supertrawler-tosupermarket route, Houston’s vision was firmly on quality of fish provided, which led to interest from Michelin-starred restaurants south of the Border.

He quickly identified a market for quality Scottish seafood and wanted to grow the business at a rate to meet demand but was inhibited by long-term credit agreements typical in the industry. A £29,000 financial package from HSBC was enough to cement a foothold in the lucrative London market where Coast & Glen now counts Restaurant Gordon Ramsay and Wright Brothers as customers.

Another example is Run4It, a specialised running retailer, expanding both its physical footprint and digital offering to target international markets. Headquartered in Aberdeen, the high street retailer owns eight stores across Scotland.

As well as bolstering its online sales platform, the retailer also seeks to expand its footprint into the North of England. By implementing a fit-for-purpose website and employing highly knowledgeable staff the retailer can take the expertise received by customers in-store and deliver it online. Despite these success stories and Scotland being full of dynamic entrepreneurs who want to look beyond their own borders, our survey’s statistics show that Scottish SMEs are still reticent to take their products and services abroad. Uncertainty plays a role in this and what’s more, these SMEs often feel the resources they need can be hard to find.

Encouraging exports is a win-win for the Scottish economy and its small businesses, so we must work together to help support SMEs take their businesses global. In fact, there is a clear need for both government, banks and businesses to do more to give SMEs the bespoke support they need to flourish globally.

Based on the findings of ‘Exporting for Growth: the SME Perspective’, HSBC has identified three

areas for government, business and the financial sector to consider in order to encourage more SMEs to take their business global.

First, cut through the complexity for small businesses by offering a more tailored, userfriendly hub of services. Our survey found 93% of would-be exporters know that help is available to them from government bodies such as the Department for International Trade, for example, but only just over half are engaging with those services, and find the range and volume of services available baffling.

For example, more tailored, on-the-ground support from government and agencies would encourage 64% of SMEs who are thinking about exporting to get started.

Second, give exporters a voice in trade negotiations. As the lines for international trade are redrawn in the coming years, 58% of exporters are concerned about potential tariff increases amid worries the UK will struggle to negotiate trade deals. In addition, they are almost as concerned with non-tariff barriers such as legal and regulatory requirements and customs co-operation.

A lack of resource within the UK in negotiating free-trade agreements is a worry for 60% of exporting SMEs, and 55% fear delays in the UK reaching new trade deals. To allay these fears, policymakers would benefit from setting up and taking counsel from an advisory group of SME exporters. They can help advise on how to tailor trading arrangements to get the best for their businesses.

Finally, renew efforts by banks, business groups and support services to share best practice.

Almost three quarters of future exporters surveyed said that having the opportunity to learn from businesses currently exporting would encourage them to do so.

The business benefits of exporting are clear. In times of uncertainty the best way to futureproof your business is to grow it. International trade can seem complex and intimidating but Scottish SMEs must be ambitious and think beyond borders to realise their full potential. n

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Exporting can seem daunting but Scottish Enterprise’s international market research service is available to help businesses investigate overseas opportunities

Helping entrepreneurs to do their export homework Life is full of old adages: “look before you leap”, “plan to succeed” and “do your homework first” are just some of the phrases and sayings that immediately spring to mind. And when it comes to international trade, all these truisms come into their own.

Carrying out research is the all-important first step for any company that’s considering exporting its products or services. Investigating the size of markets, the competitors already operating in them and any potential business partners may sound a wee bit daunting – but help is at hand.

“We provide up-to-date business intelligence – such as market research, company information or credit checks – to help companies inform their decisions, which can be anything around understanding the size of a market, identifying new customers, or finding a new supplier or distributor,” explains Emily Wilson, research manager for the international market research service run by economic development agency Scottish Enterprise. “We can underpin those decisions with really good robust research.”

The service is free for companies to use because it’s fully-funded by the Scottish Government.

Within five days of making a research request, businesses will either receive the information they require or an update on progress.

“The information comes from a range of sources: we subscribe to a range of commercially-available databases that cover market trends and company information across a wide variety of sectors and

geographies, which gives us good global reach in terms of the markets we cover; and we also use online sources because there’s a wealth of information that’s already out there in the public domain from governments and trade bodies,” says Wilson.

“Some of the most frequently asked questions come from people who are exporting for the first time and they want to find out where there are good market opportunities for them – what’s the size of market for their sector in a particular geography? Is it growing? What are the forecasts? We can also be asked who are the key competitors in a particular geography.”

The service is available to all companies in Scotland, no matter which sector they operate in or which area they’re based. Asking Scottish Enterprise to carry out research can save companies time, money and effort.

“We get requests from across the board, although the food and drink and oil and gas sectors tend to ask us the most questions,” Wilson points out. “But we get questions from companies of all shapes and sizes, from lifestyle businesses and start-ups all the way through the medium and large companies. It’s a real mix.”

Since the start of the financial year, the team has responded to 743 research requests from 533 companies, with just over 24% of those requests coming from repeat customers. There’s no limit on the number of times that companies can come back to ask further questions.

“The number of companies coming to us with inquiries is growing because we’ve invested in the service over the past year to support businesses that are looking to export,” adds Wilson. “It’s a hugely-valued service – we can see that because customers come back repeatedly.

“But it’s not just about growing turnover – sometimes a company may have an idea about going into a particular market but once we’ve provided them with research they realise that it’s not right for them and so we help them to avoid costly mistakes.” International trade represents a massive opportunity for Scottish businesses.

Scotland’s exports increased from £23.4 billion in 2010 to £27.5bn in 2014, the most recent year for which statistics are available.

The food and drink industry, including Scotch whisky, accounted for £4.8bn, with the energy industry clocking up £4.2bn, including renewables and excluding oil and gas.

Professional services – such as accountancy and law – tipped the scales at £2.3bn, followed by petroleum and chemicals at £2.1bn.

The European Union was Scotland’s biggest overseas trading partner, scooping up £11.6bn of exports, followed by North America at £4.4bn and Asia at £2.9bn. In terms of individual countries, the United States topped the table as Scotland’s largest export market, soaking up £4bn, followed by £1.9bn for the Netherland’s distribution hub and the same figure for France, where Scotch whisky massively outsells cognac. n

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Jamie Bruski Tetsill, founder of Shapes of Things Fashion designer Jamie Bruski Tetsill set up Shapes of Things in Glasgow to provide “a fun and edgy alternative to typical baby and children’s fashion”. He first used Scottish Enterprise’s international market research service three years ago when he was writing his initial business plan.

“I needed to find out facts and stats on trends and top stores in a range of countries,” he explains. “I’m a creative person, and having that business support really helped me.”

The company is now exporting its baby and children’s clothing to a wide variety of countries, including Australia, Japan and the United States. The business has focused on markets such as Houston, New York and Pennsylvania, along with Sydney and Western Australia.

His latest move has been into the Benelux countries, where he has appointed agents for Belgium, Luxembourg and the Netherlands following a recent trade visit. “The trip was very successful from start to finish and we’re already seeing orders coming through,” he explains. “The agents absolutely loved our designs and collection.

“We set ourselves a very tight timeframe of carrying out a month of research and then spending a month arranging meetings. We managed to turn the project around really quickly.

“The model worked really well for us and so we’re adopting the same approach for a further 16 European markets. We’re aiming to go to the Playtime Paris exhibition at the end of January – we’ve been using the research service to try to get appointments for Paris and already we’ve got 20 appointments in the diary, which is really good.

“The support from the research service was great, helping us to identify the agents and how to get in contact with them.”

WEDNESDAY 22 MARCH 2017

2017 In association with

BQ is delighted to announce the fourth HSBC Scottish Export Awards and International Trade Campaign in association with Scottish Enterprise The HSBC Scottish Export Awards and International Trade Campaign in association with Scottish Enterprise bring together businesses from across Scotland to recognise and celebrate their entrepreneurial exporting achievements as well as encourage others to increase their export potential.

Exporting and international trade remain central to the Scottish government’s economic growth agenda and this campaign and export awards are about recognising those entrepreneurial, wealth creating companies that are selling their products, services and expertise in scores of overseas markets. It is vital that we appreciate and recognise those exporters who have made the transition from great local companies to potentially world class exporting businesses based in Scotland.

Exporting continues to present an opportunity for Scotland to bring immediate and sustainable growth to its economy and with this in mind we need to pass the baton to SMEs across

the country to consider exporting as a realistic opportunity for growth.

The event in 2016 generated 185 nominations from 102 Scottish exporters with 45 exporters shortlisted representing £500 million of export turnover from Scotland. The 2017 campaign will culminate with the awards evening to be held on 22 March 2017 at the Glasgow Hilton.

The event will be the highlight of the international trade campaign that will see BQ promote exporting across its entire audience in Scotland, in print, online and across social media. Forthcoming editions of BQ magazine in Scotland will carry lead feature sections on international trade and the BQ Breakfast digital business update service will also reach out to Scotland’s exporters with a range of international trade initiatives including the ‘Around the World in 80 Trades’ feature, showcasing the best of Scottish export activity online.

Nominations for the HSBC Scottish Export Awards 2017 in association with Scottish Enterprise are now open and you can enter FREE online at www.bqlive.co.uk/ScotExportAwards17. Closing date 13 January 2017

CATEGORIES The HSBC Scottish Export Awards 2017, in association with Scottish Enterprise, are open to all businesses with a presence in Scotland. The award categories for 2017 include: MOST ENTREPRENEURIAL EXPORTER OF THE YEAR A company that has demonstrated entrepreneurial flair within their export strategy. This will be shown through an extraordinary approach to reaching new markets where creativity, innovation and tenacity has resulted in success.

MICRO EXPORTER OF THE YEAR Recognising outstanding achievements in export growth by a company in any industry with a turnover up to £2million. This success will be measured by growth in sales and market penetration together with the application of innovative market strategies to extend export potential.

SMALL EXPORTER OF THE YEAR Recognising outstanding achievements in export growth by a company in any industry with a turnover of £2-£15million. This success will be measured by growth in sales and market penetration together with the application of innovative market strategies to extend export potential.

LARGE EXPORTER OF THE YEAR Recognising outstanding achievements by a company in any industry with a turnover greater than £15million. This success will be measured by growth in sales and market penetration together with the application of innovative market strategies to extend export potential.

EXPORT TEAM OF THE YEAR The export team of the year award will recognise a team who can demonstrate significant added value to their business through adopting innovative techniques, personnel development measures, and successful implementation of the company’s export sales strategy. It should be clear how the company has developed a team-wide approach to exporting which may well extend beyond the company to distributors, agents and other third parties who will have contributed to export success.

E-COMMERCE EXPORTER OF THE YEAR A company that through e-commerce has increased brand awareness and recognition, expanded into new markets, increased sales and efficiency and improved customer service. The winner of this category must be able to demonstrate how they have used e-commerce and trading online to significantly enhance their export growth or potential for growth.

PROFESSIONAL SERVICE ADVISER OF THE YEAR A business that does not export, but plays a key role in supporting exporters to trade overseas either directly or indirectly through providing associated services such as advice and consultancy. The professional service adviser of the year award will recognise a company that has demonstrated outstanding achievements in supporting businesses to achieve their exporting objectives. Success will be measured by the advice given and how it directly affected export growth in the companies supported.

LOGISTICS PARTNER OF THE YEAR Awarded to a company that provides outstanding customer service and innovation in supporting the export market with their delivery solutions. Success will be measured through their ability to support complex or innovative methods of distribution and delivery whilst adding value. Where possible nominees in this category should also be able to show how their business is focusing on support for new and emerging export markets.

HIGH GROWTH MARKET EXPORTER OF THE YEAR Awarded to a company demonstrating impressive export growth in high growth markets (including India, China, Hong Kong, Macao, Taiwan, Bahrain, Kuwait, Qatar, United Arab Emirates, Saudi Arabia or Oman).

This success will be measured by growth in sales and high growth market penetration together with the application of innovative market strategies to extend export potential.

HSBC SCOTTISH EXPORTER OF THE YEAR This award will be presented to a company that has made an outstanding contribution to Scotland’s export profile and success. Companies must have demonstrated how they have overcome their barriers when entering new markets. The winner of this award will be selected from the winners of the above award categories and announced on the evening of the awards.

ENTER NOW AT WWW.BQLIVE. CO.UK/SCOT

EXPORTAWARDS17

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“The awards that we’ve won also open doors for us to have conversations with potential clients”

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Powering into overseas markets Sales director Campbell Archibald explains why Alba Power has benefited after winning the large exporter of the year prize at the 2016 HSBC Scottish Export Awards in association with Scottish Enterprise Finding success overseas is all about spotting opportunities. For Alba Power, it was down to identifying a ‘gaping hole’ in the market.

The Aberdeenshire-based company began its life as a supplier of spare parts for Rolls Royce Avon and Olympus gas turbines, but then recognised there was demand from customers for exceptional service that would help owners to prolong the life of their engines in a costeffective way.

Alba Power began exporting in 2002 and has now graduated from using space within Scottish Development International’s hub at Houston in Texas to having its own repair and overhaul facilities in the city. The company exports its services to customers in more than 16 countries spread throughout the Americas, Asia, Europe and the Middle East.

Now the company is reaping the rewards of its strategy. Pre-tax profits for 2015 hit £3.56m, up by 92% from the £1.85m posted in 2014 and marking the second year that its surplus had nearly doubled. Turnover rose to £21.4m from £16.8m during the same period.

“Our exports have grown again during 2016,” reveals Campbell Archibald, sales director and president at Alba Power and one of the company’s founders. “I expect that exports will account for between 80% and 90% of our turnover this year.

“When oil and gas prices fall, fuel becomes cheaper and so customers run their turbines for longer, which leads to more maintenance and repair work for us. We’ve seen that in markets such as power generation in North America.

“We’ve also picked up work in the North Sea because operators are looking to cut their costs and we can offer them 15% - 20% savings in

some cases. We’ve always spread our business across power generation, oil and gas and individual owners so that we don’t see so many slumps.

“Now that we have a really good client base, our strategy is to widen the range of turbines that we can service for those customers, with markets such as Canada and the US seeing growth. We’ve been working on a development programme for the RB211 engine.”

Alba Power is investing £1m to double the size of its head office near Netherley, around five miles from Stonehaven. The company already employs around 65 people and its headcount is expected to rise further when its larger facility opens in March. Archibald has been busy sharing his tips for export success with other Scottish businesses. In November, he was one of the speakers at Get Connected 2016, Scotland’s largest international trade networking event, which was held in Glasgow.

Not content with winning the most entrepreneurial exporter of the year title two years ago at the inaugural Scottish Export Awards, Alba Power carried off the large exporter of the year prize at the 2016 HSBC Scottish Export Awards in association with Scottish Enterprise.

“Winning awards is excellent for morale,” says Archibald. “It shows everyone that we’re doing things the right way.

“Whether we’re in tough times or good times, if someone gives you a pat on the back then it’s always a good feeling that we can share. Every member of the team helps to get to that position.

“Our workforce is very diverse – there’s a wide spread of experience. We’re all either travelling

or working on the engines, so all our workers are dependent on exports.”

He adds: “From the customers’ point-of-view, each award is an accolade that we can hold up and say that independent judges have looked at us. It gives customers that bit of comfort when they’re talking to us that we’re going to be here for the long haul and we’re a company that’s worth working with.

“The awards that we’ve won also open doors for us to have conversations with potential clients.”

Archibald says that winning the two prizes in different years has been a real boost because it’s shown how the company has grown and progressed in the intervening years.

It’s not just the Scottish Export Awards that have praised Alba Power’s progress either. The company won the export achievement award at the 2015 SPE Offshore Achievement Awards and was named as the export champion at the 2014 Growing Business Awards in London.

Last month the firm was a finalist in the customer focus category at the 2016 Scottish Business Awards, during which actor and environmentalist Leonardo DiCaprio delivered an inspiring speech to more than 2,000 business people at the Edinburgh International Conference Centre. Alba Power isn’t resting on its laurels though. Having moved its North American presence from North Carolina to Texas, the business is continuing to grow in markets around the world and is eyeing its next overseas site.

“We’re looking at the Far East and opening an office there is certainly on the horizon,” says Archibald. “It’s early days but already we’re winning contracts in the region.” n

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ENTREPRENEURIAL SPARK Media Partnership

Is ‘help’ our nation’s biggest swear word?

Lucy-Rose Walker, the chief entrepreneuring officer at Entrepreneurial Spark, the world’s largest free business incubator service, explains why entrepreneurs need to use the ‘H’ word

ENTREPRENEURIAL SPARK Media Partnership

Since when did asking for help become a taboo subject? My role involves championing the work of entrepreneurs across the UK every day and one thing I’ve noticed is that a big barrier to business progression can be a reluctance to ask for help. Earlier this week, I was asked if, now that I’m chief entrepreneuring officer of a successful business, I have all the answers.

Of course I don’t – how could I? Anyone who thinks they know all the answers hasn’t been asked the right questions, and isn’t surrounding themselves with people who challenge their personal and business growth.

So, do I feel under pressure to know everything?

In a word, no. Part of growing and running a business is exploring new things; expanding into new markets, discovering different elements of the entrepreneurial journey and reacting to customer wants and needs.

If you’re not willing to seek assistance, or gain insight from someone with experience of your problem, then you’ll struggle. I’ve seen many of our entrepreneurs battle with a problem for up to 72 hours or longer before caving in and admitting they need a hand, whereas if they’d just asked in the first instance it could have been solved much more quickly.

Regardless of where you sit within an organisation you shouldn’t be scared to ask for help. No one gets to the top without a hand to help them along the way, and I know from experience that I’d rather my team ask a question and get on with the task at hand than spend significant time pondering what to do.

It’s counterproductive to isolate yourself and stick with the mentality of “I can do it on my own, I don’t need anyone”, because as much as you might be able to do most of it yourself, no single person has every skill needed in business.

I know I don’t – that’s why I’ve looked at my strengths and weaknesses and built a team around me that fills these gaps, and does so in a way that enhances the organisation. Part of being an entrepreneur or business leader is getting comfortable with being uncomfortable.

You can’t disrupt the marketplace and make an impact if you keep it safe. And you’ll never build your skillset by doing the same thing day in and day out; you need to get out of your comfort zone and face the unknown territories ahead.

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“ Anyone who thinks they know all the answers hasn’t been asked the right questions”

Don’t be scared of what’s out there, break down the barriers and find out for yourself.

The one thing all entrepreneurs need to remember is that they aren’t the only ones facing this journey. It’s all too easy to get caught up in the fear of going it alone and channelling your vision and ideas into a start-up that may or may not succeed. But so many other people are doing the exact same thing and travelling the same rollercoaster ride.

This is why the community we have built at Entrepreneurial Spark is so important. In each of our hatcheries – or incubation centres – there are up to 80 entrepreneurs working in the same space. While they’re focused on their individual business, they’re also there to speak to each other and find out how they could help one another. I’ve seen so many instances of one person struggling with something, for example navigating the export journey, but then speaking to another entrepreneur and realising they have travelled that path and can provide them with the skills, contacts and confidence they need to take the next step.

At Entrepreneurial Spark, we’re breeding a culture of entrepreneurs devoted to helping each other and giving back, and that’s what is going to help them build a successful business.

Powered by Royal Bank of Scotland and with our partners KPMG, Dell EMC, and Harper Macleod, we build on this community by providing a wealth of expert knowledge and support to our entrepreneurs free of charge.

Now, we need to build this on a greater scale and develop a wider community of entrepreneurs across the country who can offer first hand advice, support and experience to each other. Not only is it invaluable to have this help, but it will also make many entrepreneurs realise they’re not alone and that there is a support network out there ready for them to tap

into. Mentors are also a great source of support for early stage businesses, offering expertise and advice across a variety of fields. I have three mentors who help me with different elements of my journey, so know only too well the value they bring.

So, if you’re scared of taking that step and, gasp, asking someone for help, how do you change this? Well, the first step is recognising this is an inevitable part of business, without which you’ll likely not grow as quickly or as successfully. Then, you need to consider the reasons why. Are you stubborn and determined you can make it alone? Or is it that you’re too nervous of looking unprepared, or you don’t know your business? Figure out the ‘why’ and then you can tackle the ‘how’.

When you know why, that is the time to make a change; develop your mindset and embrace the constantly curious behaviours of an entrepreneurial leader.

Build your confidence by networking and speaking to people you don’t know. Begin to ask your contacts for advice and support, with the aim of taking this one step further and having the ability to ask those further up the chain for a helping hand.

Many of the entrepreneurs I speak to on a daily basis say they’re surprised by how willing people are to offer their help and gratified by the number of those who are happy to provide it free of charge.

I truly believe that the best way to build a business is by building yourself and your team, and so much of this is developing your skills, mindset and behaviours.

As a nation, we like to help and see our advice being heeded – so what’s stopping you?

Take a risk and use the ‘H’ word. You never know what you could achieve with that little bit of help. n

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ENTREPRENEUR bqlive.co.uk

Ensuring a bright future Edward Bruce is gearing up for further growth at insurance broker Bruce Stevenson, including bringing on board cyclist Mark Beaumont as a corporate ambassador, as Peter Ranscombe reports When it comes to corporate outings, there are a weird and wonderful array of choices for entrepreneurs – members of staff can be taken raft building or claypigeon shooting or even duck herding to learn about working together as a team. For insurance broker Bruce Stevenson’s latest strategy day, chief executive Edward Bruce decided to hit the water.

“We went down to Henley and got into an eight-man racing boat with two Olympic rowers in it – and we didn’t sink it,” he laughs. “It was really good actually because we had to work together as a team. If one person makes a mess of it then the boat doesn’t work.

“Then we went into the British Rowing Centre and learned about what they do – it’s all about small margins and good communication.”

The importance of good communication is a topic that comes up again and again in conversation with Bruce, 52.

“I quickly realised that insurance is a ‘people’ business,” he explains. “If you’re good at communicating with staff and customers and the insurance market then you can make a go of it.”

Bruce trained as a chartered surveyor before moving into the insurance industry. “Originally, I didn’t see myself working in an office full-time – I always fancied getting

out-and-about to visit properties,” he explains.

“Later, I realised that being a chartered surveyor actually involved a lot of time sitting in an office. They were tough times for the property market and insurance seemed to offer more opportunities. I’d already passed my exams and had a good reputation, so I knew I could go back if I wanted to.

“I was working in Fort William at the time and both myself and my fiancée decided the time was right to move to Edinburgh – Lochaber is a lovely part of the world, but we’d had enough of the rain and the midges.”

When he moved back to Edinburgh in 1996, Bruce joined the family firm, Bruce Stevenson, which his father – David Bruce – had co-founded in 1981 with Tony Stevenson, who once owned the luxurious Prestonfield House Hotel in Edinburgh. The brokerage at that time was relatively small, with only about ten members of staff.

“I’m not sure everyone was expecting me,” he remembers. “They’d acquired a small company around the same time, but the board wasn’t a very happy board.

“They had come to an age when most of them were thinking about exit plans. So my father – who was the managing director, but not a controlling shareholder – bringing his son in, wasn’t something that the other

ENTREPRENEUR bqlive.co.uk

“They’d acquired a small company around the same time, but the board wasn’t a very happy board. They had come to an age when most of them were thinking about exit plans”

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“Our customers buy insurance and hope that they never have to make a claim – but if they do then our claims department is our shop window” directors were necessarily all that keen on.

“It was a challenging two or three years. The company had lost direction and it was losing money and customers. I ended up giving my father an ultimatum – either back me or I’m off.

It wasn’t a great place to be at all.

“But thankfully he did back me, for which I’ll always be grateful. Some of the other shareholders left the business and I bought out some of the others.”

Bruce took over as managing director in 2001, with his father becoming non-executive chairman, a role from which he stood down eight years ago. Bruce’s fellow shareholders are all now working in the business.

To turn the company around, Bruce introduced measures to make his firm ‘the broker of choice’ – which is now the business’s strapline – by concentrating on several specialist areas: property; renewable energy; social housing; and private clients. Subsequently, he has continued to add expertise to the business, with current specialisms including: farms and estates; food and drink; heritage property; jewellery and fine art; and tourism.

His sectoral focus has also been accompanied by growth in the firm’s geographical footprint.

The company’s headcount has grown to some 85 members of staff, with around 20 in Glasgow, eight at Galashiels in the Borders, a farms and estates specialist operating in Aberdeenshire, and the remainder at its head office in Edinburgh.

Tucked away on Coburg Street in Leith, the head office combines the old and the new, with a modern reception block sitting next to a traditional brick-built edifice. Blink and you’ll miss it as you bounce along the cobbled road outside.

Bruce’s plan to turn the firm from a general insurance broker into a business with specialisms is clearly paying dividends. Gross written premiums (GWP) – a measure of how much clients spend on insurance – have risen by 18% in the past year to £30 million, with the firm’s own revenues rising by 16% to £6.4m and

gross profits before bonuses, dividends and tax surging to £1.5m from £1m.

Its performance in the past year has been boosted by a flurry of renewable energy projects racing to get off the ground before changes in UK Government subsidies came into effect, with other areas including social housing also doing well. Bruce Stevenson is currently in year four of a five-year plan, leaving it well-placed to hit its targets of growing GWP to £33m, revenues to £7m and gross profit to £1.75m.

“Over the past five years we’ve managed to grow while the overall market has been flat,” Bruce explains. “What’s been especially encouraging is that we’d planned for most of our growth to come through acquisitions, but we’ve actually only taken over one firm during the past four years, so this growth has been organic.” Back in 1997, Bruce Stevenson was one of the founding members of UNITAS, an alliance of regional insurance brokers throughout the UK. The organisation is now known as UNA and Bruce is one of its directors.

“Early on, I realised that our business would need added buying power if it was going to compete with the larger brokers,” he says.

“That’s what UNA gives us.”

As well as being a member of UNA, Bruce Stevenson is one of only around 100 firms in the UK to hold the designation of being a ‘Chartered Insurance Broker’. One of the reasons the company has achieved the accreditation is Bruce’s insistence on staffing passing their professional examinations before they can progress up the career ladder at the firm.

When he asked his friend, Mark Richards, to give up his role as managing director of Bonhams’ Scottish auction house to become private clients’ director, that rule applied to him too. “It meant Mark was sitting exams again in his forties, which I don’t think he’ll thank me for,” Bruce smiles. “He passed all his exams with distinction.”

As the company continued to grow, Bruce knew that he needed to maintain the quality of the service that it offered to its clients. “If you go

onto any insurance broker’s website then they’ll talk about being ‘client-focused’ but I wanted us to be able to prove it,” he says.

To access the quality of the firm’s service, Bruce turned to the ‘Investor in Customers’ scheme, with the company receiving a three-star ‘exceptional’ rating, which less than 15% of candidates achieve on their first attempt. The firm secured one of the highest overall scores recorded by a financial services business.

Bruce thinks that part of the firm’s success has been building up its own in-house claims management team, instead of outsourcing the work, which is the route down which some of his rivals have gone. “Our customers buy insurance and hope that they never have to make a claim – but if they do then our claims department is our shop window,” he says. “If they’ve had a good experience then they will recommend us to other people.”

Although his father may have left the business eight years ago, there’s still one memento from his old man sitting in Bruce’s office – a curling trophy. “My father used to organise a ‘bonspiel’, which is a curling tournament,” Bruce explains as he reaches around and picks up the oblong wooden prize with its two model curling stones on top.

“He used to invite players from all of the other firms in Scotland’s insurance market. There are so few left now.”

Curling may have been his father’s sport, but tennis is Bruce’s preferred option. “Instead of buying a flash car for my fiftieth birthday, I built a tennis court instead,” he laughs. “It sounds extravagant, but myself, my wife and our two children play, so I’m hoping to get a good 25 year’s use out of it.”

The sporting theme is continuing with the appointment of Mark Beaumont – the Scottish cyclist who pedalled around the world – as the firm’s new corporate ambassador. “Mark will help to represent the firm, both digitally and offline,” Bruce says. “It’s quite different to what we’ve done before and will help to get our name out there and promote the firm.” n

ENTREPRENEUR bqlive.co.uk

“Over the past five years we’ve managed to grow while the overall market has been flat”

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ing and g n a h c s i Banking banks are driving er challeng t change. Peter tha one much of ks to Craig Iley, k tal tom Ban Jackson A f o s r e und of the fo

BUSINESS FOCUS Special Report

Banks have not enjoyed a good press in recent years, having been condemned as either villains or scapegoats.

RBS still seems a long way from repaying the taxpayer and, at the time of writing, Germany’s troubled Deutsche Bank has seen its shares plunge to its lowest ever level.

So, you might think it would call for a high degree of courage - or foolhardiness - to found a new bank in this environment, but there are plenty of shrewd operators who see opportunity amidst the challenges and have set up so-called challenger banks.

Among these is Atom Bank, founded and headquartered in Durham, a city famous for its university and its miners’ gala, but not for financial services.

And the bank, based in the city’s leafy outskirts, is way beyond the stage of being a twinkle in the eye.

It was formally established in April 2014, swiftly raised £135m of capital, gained its banking licence and put in place its key technological infrastructure.

Having been set up with just six people, it now has about 250 full time staff operating from two sites in Durham and a small London office.

It is now in business and is developing a full retail and commercial banking service and will shortly be announcing a new mortgage product.

The citizens of Durham, however, could be forgiven if they remain unaware of this new financial institution.

When I pull up in the carpark at around 8.30am I could have arrived at one of the university’s newer colleges. The Atom staff turning for work look more like students than bankers – young, casually dressed, often riding bikes and sporting a high concentration

of hipster facial hair. It’s banking, but not as we know it.

I met Craig Iley, Atom’s managing director of business banking and one of its founders.

Iley, 52, has a background in traditional banking, having started at TSB in 1983 and reaching the position of regional director for Santander. Like most of the bank’s employees, he wears sweatshirt and casual trousers – it’s all much more Silicon Valley than Threadneedle Street.

He is fully conscious of being part of a Brave New World and it’s something he has clearly thought long and hard about. He explains in a measured, almost academic way, the nature of the changes we are all seeing.

“The world is in the middle of its third revolution and that revolution is a Digital Revolution. Unlike the Agricultural Revolution or the Industrial Revolution, the pace of change is significantly faster and as a population we will probably only get something like 20 years to adjust. This Digital Revolution will affect every aspect of life and it doesn’t really matter where you work, whether it’s in health, education, manufacturing or in banking. For banks in particular, this is going to mean a very painful adjustment.’’

He argues that banks are based on a 17th century model, designed to physically move paper around a local physical environment whereas banking in the 21st century will be a matter of moving data digitally and internationally. He cites a report by management consultancy McKinsey in February which highlighted that the worldwide trade in data is now estimated to be worth more than the economic value of all manufactured goods and associated trade.

It has been against this backdrop that Iley and his

igh rting a h o p s d n a we bikes n riding ut not as e b t f , o g , in d k e n dress t’s ba casually ial hair. I c a f r e t “Young, s hip ation of concentr know it”

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fellow founders analysed trends in financial behaviour, technological developments, the convergence of technological devices and the blurring of the distinction between work and home life.

“We believe that people are more and more seeking to have a relationship with their money rather than a relationship with their bank,’’ he says.

To satisfy that need, they set about creating a new type of bank and for this new model they identified three key elements: low cost; transparency; and innovation.

Iley argues that the cost base of traditional banks is too high leading to the development of complex and expensive products which are often unsuited to their customers’ needs.

“Transparency, I believe is the battleground for the future of banking over the next five to ten

years,’’ he says, adding that banks have been allowed to develop “very opaque’’ business models making it impossible for customers to understand exactly what they are paying for and whether it represents good value. Innovation is crucial in giving consumers greater power.

“This is very much a journey and we have made significant strides in introducing things such as biometric security and access and a very interactive app which is based on gaming technology rather than simply transferring a website to a mobile platform,’’ he says. “We’re developing our systems to be more interactive and able to link with other interfaces and we’ve developed a very slick process to allow us to lend money to SMEs. There remains much to do but we’re excited by the possibilities.’’

a g to have in k e e s e mor with more and n a relationship e r a le p o e er tha ve that p oney rath m ir “We belie e h t hip with relations k” their ban

The app has been developed for Apple and Android devices and Atom has built a deposit product to provide the business’s liquidity and fund its business lending product and it will soon unveil its new mortgage product. It is also working on personal and business current accounts and debit and credit cards.

“While these products will be recognisable as traditional banking products, we have some surprises that we believe will delight the market,’’ says Iley.

For liquidity Atom Bank will rely on depositors and not the interbank market.

“If you look back to the financial crash of 2008/2009, some of the businesses that got caught up in that were actually solvent but because liquidity markets froze around the world they were unable to fund their ongoing business models,’’ he says.

Atom’s deposit product has allowed it to reach the stage where it is now lending to support business growth.

“At the moment we are lending to SMEs which have a requirement to borrow and we are looking to balance that with a sensible credit appetite and sensible security requirements,’’ he says.

Atom will be willing to secure loans against assets other than bricks and mortar, such as an occupational lease or a debtor book.

While the bank will be highly automated and technology driven, it will still place great importance on manual underwriting.

“That is really important. Because of the variation we get in SMEs across the UK no bank has managed to successfully automate the lending process in the sense of the decision making,’’ says Iley.

“But what you can do,’’ he adds, “is improve the process.’’

Traditionally that process would involve visits to the bank, supplying financial records, the relationship manager forwarding an application to Credit who would analyse it and ask their own questions – a process which could take six weeks. Iley says Atom Bank can complete the process in 72 hours.

How? Iley explains that Atom uses its UK-wide network of intermediaries, made up of SMEs’ trusted advisors such as financial advisors and brokers and accountants.

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al ve region strong a h o t t n a “If you w ou have to have a y, y have to autonom e otherwise you he bas n where t o d financial n o L o ually t d” go contin controlle e r a s g in purse str

“We work with a small group because we have to have confidence in the quality of the information that comes to us and we do extensive due diligence on these partners,’’ he says.

Technology then comes into play with Atom’s Digital Bridge which links to the borrower’s accounting package allowing it to submit information electronically.

“By giving them the opportunity to do it digitally, it takes away a lot of the hassle factor for them,’’ he says. “But it does much more than that behind the scenes, it also helps us understand how the accounts have been compiled and it means we don’t have to keep going back asking for information because the information they submit tends to be more complete.’’

The information can be fed directly into the

underwriter’s analysis tools giving them more information in a more streamlined way.

Iley adds: “What it also allows us to do is to share information back with the client and their advisor who can use this information to help them improve the operation of their business,’’ “We are saying that as part of your banking you can have all this information back for free. In the past banks have taken information from SMEs and have used that to make sure the balance of power in that relationship sat with the bank.’’

He believes this anticipates far-reaching changes which are coming to business, with it becoming increasingly necessary for firms to digitise their accounting, as HMRC, for example, moves increasingly to online and digital processing.

Atom’s ambition is to act as a thought leader and work with businesses in adapting to, and

adopting, the new technology.

If Atom’s vision is realised then it could drive a banking revolution, which will not only be good for consumers but also for regional economies outside London.

Iley says: “We’ve had a huge amount of support because we are creating something different and bringing high quality jobs to the area.

“If you want to have regional autonomy, you have to have a strong financial base otherwise you have to go continually to London where the purse strings are controlled. The idea of having a financial centre isn’t just unique to the North East, it has planted a seed for other areas.

The fact that we can do it here I hope will give confidence to businesses everywhere that in the digital world it’s possible to do things wherever you are.’’ n

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SCO TTISH BUSINESS AWARDS Media Partnership

DiCaprio highlights economic opportunities in tackling climate change at Scottish Business Awards Oscar-winning actor and environmentalist Leonardo DiCaprio brought a splash of Hollywood glamour to the 2016 Scottish Business Awards, while the nation’s entrepreneurs shone as the stars of the show

Climate change took centre stage at the 2016 Scottish Businesses Awards as film star and environmental campaigner Leonardo DiCaprio challenged members of the audience to play their role in protecting the planet. DiCaprio was the keynote guest at the ceremony, which was attended by more than 2,000 business leaders, making it the largest dinner of its kind in the UK for the third year running.

DiCaprio was joined on stage by Terry Tamminen, chief executive of the Leonardo DiCaprio Foundation (LDF) and a former secretary of the California Environmental Protection Agency and chief policy advisor to the state’s then governor, Arnold Schwarzenegger.

The men were interviewed by BBC Radio 2 breakfast show host Chris Evans, who fired off a broad range of questions, ranging from what is was like to have director Martin Scorsese as a boss through to the filming of Before the Flood, an online documentary about climate change made by DiCaprio that’s been watched by more than 62 million people. Tamminen said that he and DiCaprio had met with First Minister Nicola Sturgeon and he praised the political will of her

Scottish Government in tackling climate change.

He also praised Scotland’s fledgling tidal power industry; just days before the dinner, Atlantis Resources announced it had connected the first of its turbines at its MeyGen project in the Pentland Firth, a mere matter of weeks after Nova Innovation said its Bluemull Sound project off Shetland had become the first offshore tidal array to deliver electricity to the grid.

Earlier in the day, DiCaprio had visited Home, a restaurant in Edinburgh set up by Scottish Business Awards co-founder Josh Littlejohn and Dean Gassabi, the chef behind the city’s Maison Bleue eatery. Diners can buy meals that are served to homeless people at the restaurant, which also provides training for some of society’s most disadvantaged people.

DiCaprio’s lunch of macaroni cheese was prepared by members of staff Colin Childs, Joe Hart, Biffy Mackay and Sonny Murray, all of whom come from homeless backgrounds. The restaurant echoes the ethos of Social Bite, the sandwich shop chain co-founded by Littlejohn.

All the profits from the Scottish Business Awards – for which BQ was one of the partner

organisations – will be shared among three charities: the LDF; Scottish Edge, a competition that provides grants and loans to start-up businesses; and Social Bite. Just under £1m had been raised by the start of the evening, bringing the total secured over the past five years to more than £4m.

Littlejohn told the audience that Social Bite would be holding a “CEO sleep out” at Charlotte Square in Edinburgh on 15 December to raise money, with Sturgeon agreeing to serve bacon rolls to participants on the following morning. He also explained about his plan to build homes for homeless people using £5,000 modular units at Granton in Edinburgh.

Alan Mahon, Littlejohn’s co-organiser of the Scottish Business Awards, introduced the audience to Brewgooder, the beer brand that the pair created in partnership with Ellon-based brewery Brewdog. The profits from the sale of its lager are donated to charities that provide clean drinking water in developing countries.

DiCaprio wasn’t the only star on the bill though – Sir Tom Hunter, the chairman of the Scottish Business Awards, presented rock band Simple

SCO TTISH BUSINESS AWARDS Media Partnership

Minds with the inaugural ‘Andrew Carnegie award for inspirational Scots’. Simple Minds then gave a surprise rendition of their hits ‘Don’t You (Forget About Me)’ and ‘Alive and Kicking’, with singer Andreya Triana delivering a followup performance.

Hunter also introduced the audience to Founders4Schools, a charity led by entrepreneur Sherry Coutu that uses technology to connect teachers to role models, such as entrepreneurs, who can come and speak to their classes to inspire their pupils. “It’s working in England and we’re going to launch it in Scotland early in the new year,” he said.

“The World Economic Forum says that if your child is at primary school today then by the time they get into the world of work 65% of the jobs available to them have not even been invented yet. Over the next few years, 100% of the net jobs created in the UK economy will be created by companies that are less than five years old.

“We’re living in the world of disruption, so how do we in Scotland make sure we are the disrupters and not the disrupted? We need to make sure we support scale-up businesses.”

The real stars of the show were the entrepreneurs whose achievements were rewarded with prizes during the ceremony,

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which was presented by Welsh comedian Rob Brydon, who serenaded the First Minister, eliciting much mirth from the crowd.

The winners included Gareth Williams, chief executive and co-founder of Skyscanner, Scotland’s first ‘unicorn’, a digital technology company valued at more than US$1 billion, who received the Chivas Brothers entrepreneur of the year award. Marie Macklin, executive chairwoman of Macklin Enterprise Partnerships, was named as the BQ female business leader of the year, while Jayne-Anne Gadhia, chief executive at Virgin Money, took the title of KPMG CEO of the year. n

And the winner is…

Royal Bank of Scotland Customer Focus Award

McEwan Fraser Legal

Fair Work Employer of the Year

Scottish Water

Chivas Brothers Entrepreneur of the Year

Gareth Williams – Skyscanner

PwC People Innovation Award

Pursuit Marketing

Family Business of the Year

Advance Construction

BQ Female Business Leader of the Year

Marie Macklin – Macklin Enterprise Partnerships

People’s Postcode Lottery Green Business of the Year

CMS Windows

Delta Airlines Investor in Scotland Award

EY

KPMG CEO of the Year Award

Jayne-Anne Gadhia – Virgin Money

Large Business of the Year

Enterprise Holdings

Johnson and Johnson CSR Award

Multiplex Construction

SEPA One Planet Award

Kettle Collective

#VOOM Virgin Media SME of the Year

The Leith Agency

Pinsent Masons Scale-Up of the Year

Spark Energy

Asda Social Enterprise of the Year

Homes for Good

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LIFE SCIENCES Media Partnership

Manufacturing the right strategy Looking ahead to Scotland’s life sciences dinner and annual awards in February, Dave Tudor, co-chair of the Life Sciences Scotland Industry Leadership Group, hails the successes so far of the Scottish life sciences strategy Few business events can match Scotland’s life sciences dinner and annual awards. Each year, more than 800 people gather in Edinburgh to celebrate the achievements of the industry over the previous 12 months – and to have a giggle at comedian and host Fred Macaulay desperately trying to pronounce the imaginative names of life science companies and the even-more weird and wonderful names of their drugs.

“It’s a great chance for us to recognise companies and individuals,” explains Dave Tudor, vice president for the primary supply chain at pharmaceuticals giant GlaxoSmithKline (GSK) and co-chair of the Life Sciences Scotland Industry Leadership Group. “It’s important to showcase the quality of the research being conducted by the finalists.

“It’s one of the biggest dinners run by any sector in Scotland and a fantastic opportunity to both conduct business and connect people – before, during and after the dinner. That connectivity and networking is very important.

Dave Tudor

“The dinner also gives us a voice and a focal point in the year. A lot of hard work goes into choosing the right keynote speaker and ensuring the speech delivered by Lena Wilson, Scottish Enterprise’s chief executive, lands the right messages.”

Connectivity is also one of the key tasks of the industry leadership group, which Tudor cochairs alongside Paul Wheelhouse, the Scottish Government’s minister for business, innovation and energy. Such groups exist across all six of the major sectors of the Scottish economy.

The group brings together representatives from academia, industry and the public sector, including the Scottish Government and the National Health Service (NHS). It offers the opportunity for the sector to voice its opinions to government and vice-versa, as well as providing a joint voice to the rest of the economy. The main task for the group is to implement the Scottish life sciences strategy, which was launched in 2005 and updated in 2011. The strategy aims to double turnover within the sector from £3.1 billion to £6.2bn by 2020 and double the gross value that the sector adds to the Scottish economy each year from £1.5bn to £3bn. Three pillars underpin the strategy: to anchor life science capabilities in Scotland; to build on them; and then attract further investment. Innovation, skills, funding and collaborations and partnerships are the focus within the strategy.

“If all goes to plan then we will relaunch the strategy early next year [2017] and people will be able to see copies of the strategy for the first time at the life sciences dinner,” Tudor explains.

“In recent years, there’s been an increase in life sciences funding in Scotland and growth in the number of small and medium-sized enterprises (SMEs). The sector is growing at around 4%

Tom Stratford

“It’s one of the biggest dinners run by any sector in Scotland and a fantastic opportunity to both conduct business and connect people – before, during and after the dinner. That connectivity and networking is very important” each year, which is good.”

Tudor adds: “We’ve also brought about a louder and more-focused voice for manufacturing. One of the challenges we face in Scotland is that we have world-class medicinal and technological research but we struggle to convert that intellectual property into long-term commercial and sustainable benefits.

“Our manufacturing sector is relatively small – it only accounts for about £750 million out of

LIFE SCIENCES Media Partnership

the £3.3bn value of the life sciences industry at present. That’s one of our big opportunities.

“We’ve launched a manufacturing strategy for life and chemical sciences, which is focused on reshoring the supply chain, the commercialisation of technology, building our future leaders and looking at a support role with Scottish Development International in bringing in targeted direct investment.

“Everybody who comes to Scotland raves about the fact we can get the government, the industry, the NHS and the universities around the same table and make things happen quickly. You can get your arms around Scottish life sciences more easily than you can anywhere else because there’s a willingness by all four of those parties to work together.”

Manufacturing is at the heart of Tudor’s ‘day job’ at GSK. He overseas seven factories globally and about 200 suppliers that produce around 200 active pharmaceutical ingredients for GSK. Two of his factories are in Scotland: Irvine produces 20% of the world’s penicillin, with 16 patients each second globally taking drugs made at the facility; while Montrose makes a range of 11 active ingredients, used by some 20 million patients every day, including some for respiratory medicines and some to treat the human immunodeficiency virus (HIV). GSK has invested £160m in Montrose over the past five years and recently announced a further £110m boost for the plant. In total, the company employs around 1,000 staff in Scotland, including 450 at Montrose and 400 in Irvine. Looking at the wider picture, Tudor points to the macro-economic opportunities that lie ahead for the sector. Globally, the population is growing, people are living longer and the income held by the middle classes is increasing – these three strands create a larger market for the medicines and the medical devices developed by life science companies.

He highlights the benefits of the patent box, the UK Government initiative that allows companies to pay a lower rate of corporation tax on profits earned since 2013 from their patented inventions.

“The UK has one of the most competitive taxation strategies anywhere in the world,” Tudor adds.

“Regulations are quite rightly becoming tighter and some parts of the world are struggling to meet those requirements. But that’s not a problem for the UK or Scotland – we can rise to those higher standards.” n

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Catching up with some of last year’s winners Life Science Business Leadership: Tom Stratford Since carrying off the trophy for ‘Life Science Business Leadership’, Tom has been a regular traveller to Tokyo where he is a member of the global executive committee at Kyowa Hakko Kirin (KHK), ProStrakan’s parent company, and contributes to KHK’s overall strategic direction.

KHK bought ProStrakan in 2011, but initially retained the name of the Borders-based business.

Now, all KHK’s businesses in the western hemisphere are being rebranded under the same banner, with ‘ProStrakan’ becoming ‘Kyowa Kirin International’ (KKI). This year KKI also bought the rights from AstraZeneca to sell Moventig, a medicine to treat extreme forms of constipation, in the European Union, Iceland, Liechtenstein, Norway and Switzerland.

Investment of the Year: Deborah O’Neil Securing £5 million of equity investment from Woodford Investment Management meant Deborah O’Neil carried off the “Investment of the Year” prize. In August, Aberdeen-based Novabiotics revealed that it had entered into an agreement with an undisclosed global partner to commercialise Lynovex, the company’s first-in-class oral intervention for acute infectious exacerbations associated with cystic fibrosis.The business was named by Biotech & Money as ‘One to Watch’ in 2017 and has presented at events including the UK Bioscience Forum, the Boulder Peptide Symposium and the 39th European Cystic Fibrosis Society Conference.

Outstanding Contribution to Life Sciences in Scotland: David Sibbald After winning an award with such a grand title as ‘Outstanding Contribution to Life Sciences in Scotland’, David Sibbald could have been forgiven for sitting back and resting on his laurels.

Instead, he and his team at health informatics firm Aridhia have been settling into their new home in the Teaching & Learning Centre at the Queen Elizabeth University Hospital, the biggest in Western Europe. Aridhia’s services have recently been selected for a £6.9 million study into to better detect Alzheimer’s dementia, funded by the National Institute of Health Research and the Medical Research Council. Sibbald has also been named as the new chair of the Glasgow Science Centre.

BIT OF A CHAT Jock Yuler examining the news behind the headlines Putting the fizz into Glasgae It’s something I could’ve told you years back from looking at The Present Mrs Yuler’s credit card bill – Glasgae is the Prosecco capital of the UK. Figures from German discount supermarket chain Aldi – which I’m sure have been subjected to the highest levels of scrutiny and are about to be submitted to a peer-reviewed journal – show that, while Londoners are still in love with their Champagne, Glasgwegians know a bargain when they see one and have plonked for the Italian fizz instead.

On the other hand, Edinburgers – always a contrary bunch – are the top buyers of ‘Malbec’, which my morecultured pals tell me is a red wine, usually from Argentina, that goes especially well with steak.

Bedroom antics Never one to pass up the opportunity for a bit of smut, a survey from Barclays about what Scots get up to in bed naturally caught my eye… until I realised it was talking about coming up with business ideas.

Turns out 34% of Scottish entrepreneurs list ‘in bed’ as the place where they come up with their best ‘lightbulb moments’.

What they’re up to in bed when this inspiration strikes is unclear.

In second place was the ‘great outdoors’, which I don’t think means Glasgae Green on a wet Thursday afternoon.

Third spot went jointly to ‘while travelling’, ‘having a cup of tea or coffee’ and ‘in the shower or bath’.

For me, those “eureka moments” usually come after the third or fourth pint of heavy, but before I’ve liberated the half-drunk bottle of Grand Marnier from the sideboard.

Beam me up, Scotty Star Trek, the documentary series about the strange lifeforms found insider the Scottish Parliament debating chamber, celebrated its 50th birthday a few weeks back and VisitScotland, always first in line for a good film tie-in, was ready to offer its congratulations.

Strictly come prancing The first words out of Keith Brown’s mouth when he stood up to deliver his speech at the Converge Challenge shindig in Embra back in September were an apology for turning up in civvies when everyone else had squeezed themselves into black tie.

The “cabinet secretary for the economy, jobs, fair work, Uncle Tom Cobley and all” had come straight from the office, but he revealed that the last time he’d been in the ballroom at the Assembly Rooms that he’d been wearing black tie – and a black shirt to match.

Brown, a former Royal Marine and all rough action hero, had donned the fetching outfit to salsa and samba with fellow Member of the Scottish Parliament, Christina McKelvie, to take part in ‘Strictly Come Prancing’, a gathering to raise money for children’s charity Aberlour Family Outreach, back in 2012.

“You can watch it on Youtube,” Brown warned the audience. And just in case you havenae found it yet, it’s at www.youtube.com/watch?v=gmm2_1PhFdA – now there’s a public service announcement for you.

So, what are the chances of Brown being asked to appear on the real show on the gogglebox?

Well, if that galumphing eejit Ed Balls can do it then there’s hope for Brown yet.

A special screening of Star Trek II: The Wrath of Khan at Linlithgow Palace included welcome messages recorded by director Nicholas Meyer and actor Simon Pegg, who plays Scottish engineer Montgomery Scott in the ‘rebooted’ franchise films. Nope, I dinnae ken what ‘rebooted’ means either.

Turns out that Scotty ‘hails’ – wee joke there for the FSB’s Stuart Mackinnon and other any Trekkies – from Linlithgow, according to one of the spin-off novels from the television series.

I hear Alex Salmond is still a bit miffed though

that Scotty is counted as Linlithgow’s mostfamous son, and not him. Donning his best pair of stick-on Mr Spock ears, VisitScotland chief Malcolm Roughead says: “We are thrilled that Simon Pegg and Nicholas Meyer have agreed to record these exclusive welcome messages for what promises to be a truly memorable evening.

“Scotty, like Star Trek itself, is a television and cinematic icon and I can think of no better place to commemorate the golden anniversary of this classic franchise than in the ‘Miracle Worker’s’ beautiful home town of Linlithgow.”

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EVENTS

BQ’s business diary helps you forward plan

JANUARY 01 11

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VisitScotland’s Year of History, Heritage & Archaeology kicks-off. www.eventscotland.org/funding/year-of-history-heritageand-archaeology-2017/

Mentoring for talented law professionals at the Law Society of Scotland in Edinburgh, 9.30am to 4.30pm. www. eiseverywhere.com/ehome/index.php?eventid=204131

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Ann Budge, who was interviewed in issue 25 of BQ Scotland magazine, will tell Entrepreneurial Scotland about her entrepreneurial journey at Heart of Midlothian football club in Edinburgh. www.entrepreneurialscotland.com/events/myentrepreneurial-journey-ann-budge

Joy Lewis of Adopt an Intern and Jim Sweeney from YouthLink Scotland will speak to Entrepreneurial Scotland about ‘Future leaders: who they are and where to find them’ at Hotel du Vin in Glasgow. www.entrepreneurialscotland.com/events/futureleaders-who-they-are-and-where-find-them

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The BQ National Emerging Entrepreneur of the Year Awards dinner powered by Atom Bank, at the Hilton Newcastle Gateshead Hotel, 6.30pm -11pm. www.bqlive.co.uk/neey17

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Scottish Renewables low-carbon cities conference at the Convention of Scottish Local Authorities’ (COSLA’s) office in Edinburgh. www.scottishrenewables.com/events/ sr-low-carbon-cities-conference-2017/venue-travelaccommodation/

Lt Col Alexander Fitzpatrick and Major Douglas Watson, both from the Royal Regiment of Scotland, will speak to Entrepreneurial Scotland about ‘leadership in turbulent times’ at Turcan Connell’s offices in Edinburgh www. entrepreneurialscotland.com/events/operational-realityleadership-turbulent-times Scottish Renewables offshore wind conference, exhibition and dinner delivered in association with the Offshore Renewable Energy Catapult at the University of Strathclyde’s Technology & Innovation Centre in Glasgow. www.scottishrenewables.com/ events/offshore17/ Aberdeen & Grampian Chamber of Commerce holds a ‘maximise your membership’ event. https://www.agcc.co.uk/ networking-events

MARCH 14 15-16

ScotHot, Scotland’s biggest food, drink, hospitality and tourism trade show, at the Scottish Exhibition & Conference Centre (SECC) in Glasgow. www.scothot.co.uk

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Scottish Council for Development & Industry (SCDI) Forum – ‘Brave New Worlds?’ at Royal Bank of Scotland’s head office at Gogarburn in Edinburgh. www.scdi.org.uk/events/691-scdiforum-2017

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Scottish Renewables annual conference, at the Sheraton Grand Hotel & Spa in Edinburgh. www.scottishrenewables.com/ events/sr-annual-conference-2017

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HSBC Scottish Export Awards, in association with Scottish Enterprise, at the Hilton Hotel in Glasgow, 6.30-11pm. www.bqlive.co.uk/events/bq-events/scotexportawards17

FEBRUARY 01-02

02 07

Data.Space, a two-day international conference organised by the Scottish Centre of Excellence in Satellite Applications, at the University of Strathclyde’s Technology & Innovation Centre in Glasgow. http://www.sacatapultcoe.org/centre/scottish/ events/data-space-2017/ Scottish Life Sciences Award at the Museum of Scotland in Edinburgh. www.scottish-enterprise.com/events/2017/02/ scotland-2017-life-sciences-awards Gareth Williams, who was interviewed in the very first issue of BQ Scotland magazine, will take Entrepreneurial Scotland ‘insider Skyscanner’ at his company’s offices in Edinburgh. www. entrepreneurialscotland.com/events/inside-skyscanner

Client interpersonal skills for lawyers at the Law Society of Scotland in Edinburgh, 9.30am to 4.30pm. www. eiseverywhere.com/ehome/index.php?eventid=204159

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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 eventsdiary@bqlive.co.uk and please put ‘BQ Scotland’ in the subject heading

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