Blight of the Defying Crunching

blackstuff predictions tackle

North Sea faces its Deals activity Scottish football’s
toughest challenge bounces back Covid-struck season

insider.co.uk

THE DRIVE
TO NET
ZERO
Mark Wilson is trying
to fill the renewables
transmission gap

PLUS:
FOR INVESTMENT
THE ONLY WAY IS
Vol 38 No.2 Apr/May/Jun 2021 £4.00
ETHICS

PLUS HAS COVID-19 DONE IRREPARABLE DAMAGE TO SCOTLAND’S HOSPITALITY SECTOR?

 !ǝƏȸǣɎɵzɖȅƫƺȸ³!…‫אהחב׎‬

NEW
CLASSROOMS

INNOVATIVE
LEARNING

P1-P7 AUGUST 2021

ȒȒǸƏɎȒɖȸɎȒɀƺƺȒɖȸ
ȸƺǔɖȸƫǣɀǝƺƳhɖȇǣȒȸ³ƬǝȒȒǼِ
www.kelvinside.org

HOPEFULLY, A NEW
PARLIAMENT WILL
EMBRACE BUSINESS
AS IT EMBRACES
A ‘NEW NORMAL’
Ken Symon’s regular view on business
A
S YOU are reading this, a new Parliament will
have been elected in Scotland. A total of 129
constituency and list MSPs, a new Parliament
and administration to face the very real
economic, personal and mental health impacts of the
pandemic. Many in business will join me in hoping
that this Scottish Parliament and Government engages
more with business than the last one did. As I write
(page 62) there are many businesses who feel that
politicians and government are not listening to, or
heeding, their very real concerns.
There were also major issues in relation to the last
administration’s handling of economy and business
matters. Supporting business development that aims to
lead to significant economic benefits is always going to
carry a level of risk. There will be failures. However, the
last administration’s support for major enterprises was
deeply flawed. A total of about £400m of taxpayers’
cash was sunk into BiFab, Ferguson Marine and
There needs to be a strong commitment
to new way of doing things and new,
stronger values in the boardroom
Prestwick airport, with two out of the three having gone
into administration.
The bigger question is the future of the Sanjeev Gupta
business empire, where a further £300m of taxpayers’
money is at risk as I write.
It is not a good record for a party that seeks
significantly greater economic powers and that wants
to chart a radically different future for Scotland.
In this issue Graeme Smith writes of the
unprecedented scale of the challenges facing the oil and
gas sector (page 23) as the pandemic has caused the
demand for oil to plummet and, as a result, has led to the
shedding of many jobs. The fear is that the number of
sector jobs lost will top 30,000 by the end of the year.
contact: editor@insider.co.uk
www.insider.co.uk
Agenda
The pandemic has also led to many changes in other
sectors, including rapidly advancing the technology
revolution in accountancy, as Perry Gourley writes in
our annual Accountancy Review (page 35), as firms
turned increasingly to cloud computing and other digital
innovations to cope with the new reality.
Scottish football has also been blighted by the shadow
of the pandemic as Covid-19 led to a season just ending
that was like no other in history. In truth, the financial
effects have only begun to be seen in the financial figures
that have so far been reported, with much of the negative
impact still to be felt, and there will be some clubs that
fare less badly than others (page 40).
For manufacturing and engineering, the challenge of
the past few months has not been just about survival but
about ‘building back better’, not just returning to old ways
as the upturn comes but finding better, more productive
and more sustainable ways of doing things as I write in
our Manufacturing Review (page 45). There are parallel
challenges for property as Francis Shennan writes in our
special Property Review (page 85).
All of this melting pot of issues – and particularly
that of climate change which is racing up the corporate
agenda – has led to calls for new commitments to
ethical investment and ways of doing business.
Businesses that do not take this to heart are in danger
of being left behind (page 49). There needs to be a
strong commitment to new ways of doing things and
new, stronger values in the boardroom.
Talking of new beginnings, it is also time for one for
me, personally. After five eventful years as editor of
Scottish Business Insider and insider.co.uk, I am stepping
down and heading to pastures new. In that time we have
been through much, including launching insider.co.uk
as a standalone website and building its coverage and its
audience. While you will see articles by me in the next
magazine, this will be the last one I shall edit. I would
like to say a huge thank you to all our readers, advertisers
and sponsors, to my valued colleagues and all those who
have supported us in many ways over that time. I hope
you will continue to support Insider. ■
May 2021 INSIDER 3
ISSUE: APRIL/MAY/JUNE 2021

contents
COMMENT
3 Agenda Ken Symon on the business community’s 23
demands for more from our politicians
33 Ian Ritchie argues for a radically different approach for
broadband rollout 35
REPORTS
18 Big Profile: Mark Wilson of Intelligent Land Group
23 Oil & Gas Review: The unprecedented challenges
facing the North Sea 27 Analysis 28 Insider’s exclusive
tables
35 Accountancy Review: The technology revolution
sweeping the profession
40 Scottish Football Finance: How clubs are tackling
the effects of a season like no other
45 Manufacturing Report: As the sector bounces back
can it build back better? 18
49 Ethical Finance: The new approach to investing in
businesses with purpose 40
55 Deals Quarterly: Growing appetite for corporate
activity as Covid recedes
60 Profile: Jacqui McLaughlin – an entrepreneur who
innovated in the pandemic
62 Funding success: Devolution funding has coped with
Covid but are changes needed ahead?

45

4 INSIDER May 2021 www.insider.co.uk

 96

69 Science & Technology Review: Collaborating to

develop new ways to save lives
75 Regional Review: Aberdeen and Grampian:
Tough times now but better days lie ahead

REGULARS
8 News Briefing: The latest news affecting Scottish 69 75
business
12 Quoted Companies: New names join the
Scottish listings
16 Burning Question: Has Covid-19 done irreparable
damage to Scotland’s hospitality sector?
80 International: The promise of growing riches in India
82 Tech Talk: Pandemic heightens the competition
for talent 80
85 Property Special: The challenge from COP26; 95
88 Changes on the High Street; 89 Flexible workplaces
90 Escaping the city 91 Improving investment
92 Wealth: Beating the inheritance tax freeze
94 Appointments: Who’s moving and shaking
95 Personnel: How do employers deal with
anti-vaxxers?
96 Slainte: Online events, awards and meetings
98 Ten Minute Interview: Praveen Kumar, curry
entrepreneur

85
82

www.insider.co.uk May 2021 INSIDER 5

 COMMENT
Research & development tax relief –
stepping out of Covid-19
Mark Pryce,
Tax Partner at Azets
Email: Mark.Pryce@azets.co.uk
Mark Pryce
AFTER a year in which many
companies have prioritised
mitigating the damage and
uncertainties of the COVID
crisis, the new financial year
offers an opportunity for a
fresh start and to think about
investment for the future.
The Government confirmed
in the 2021 Budget that it
continues to place Research
& Development (R&D) at the
heart of its plans to boost the
economy, with an ongoing
target to raise total investment
in R&D to 2.4% of UK GDP
by 2027. Generous tax reliefs
remain in place to support
innovative businesses making
investments in cutting-edge
products and processes.
HMRC’s Research &
Development Tax Credit
Scheme enables SMEs to
access tax relief and cash
credits to further invest in
their research, or indeed help
fund working capital. To
qualify for R&D Tax Relief a
project must seek to make an
appreciable improvement in
its field to resolve a ‘scientific
or technological uncertainty’.
The tax relief can be worth
up to 33% of the amounts
invested in R&D.
The Budget also confirmed
a series of new measures
around Corporation Tax. As
well as introducing a Super-
Deduction for businesses
that invest heavily in capital
projects, HMRC has extended
the period that a company’s
trading losses may be offset
against its previous years’
profits. This has the potential
to provide a significant cash
For further advice on research & development tax relief, contact
Mark Pryce, Tax Partner at Azets, accountants and business advisors.
6 INSIDER May 2021
SCOTTISH BUSINESS INSIDER
One Central Quay,
Glasgow G3 8DA
Switchboard: 0141 309 3000
ISSN: 0952-1488
Editorial Advertising
Editor Head of Sales -
Ken Symon Business Insider and Events
Tel: 0141 309 3339/ Aileen Turnbull
07769 164698 Tel: 0141 309 4909 / 07825 899187
E-mail: editor@insider.co.uk/ E-mail: aileen.turnbull@
k.symon@insider.co.uk insider.co.uk
boost to companies who Researcher Account Manager
Steven Wilson
have made losses during Tel: 0141 309 3338
Debbie Caldwell
Tel: 0141 309 1475 / 07789 778 263
the COVID period, or E-mail: s.wilson@insider.co.uk E-mail: debbie.caldwell@
who continue to do so into Sub-Editor insider.co.uk
2021/22. For companies Susan Barr
Events
making R&D Tax Relief Events operations
claims this change in the Design & production manager
“carry back” rules could have Ewan Lauder Laura Dunlop
Tel: 0141 309 3673 Tel: 0141 309 1491 / 07783 410 985
a substantial advantageous E-mail: e.lauder@insider.co.uk E-mail: laura.dunlop@reachplc.com
impact on the amount re-
claimable in corporation tax
rebates. Total Circulation 11,394 Average net circulation: 7,394 (July 1, 2016-June 30, 2017)
The R&D Tax Credit Plus other bulk distribution: 3000 copies to selected UK first class rail lounges. 1000
copies to selected UK airport lounges. 3200 downloads of the Insider App product
Scheme continues to be one (Android and Apple stores).
of the most attractive tax Enquiries on subscriptions/back issues Tel: 0800 141 3347
breaks offered by HMRC to E-mail: customerservices@insider.co.uk
both profitable and loss- Enquiries on Top500 and SME300 databases Tel: 07788 168576
making companies. The E-mail: sme300@insider.co.uk/top500@insider.co.uk
new Corporation Tax rules
introduced in Rishi Sunak’s © Insider Publications Ltd. All rights reserved. No parts of this publication may be reproduced or
transmitted in any form or by any means, electronic, mechanical, photocopying, or otherwise, or
Budget further enhance the stored in any retrieval system of any nature without the prior consent of Insider Publications.
value of the Tax Relief open While every reasonable effort is taken to provide accurate information, neither Insider Publications
to innovative businesses who Ltd nor its employees and agents can accept responsibility for inaccuracies or omissions, or for
changes in the details given. The information should not be used as the basis for an investment.
qualify. Businesses developing
new concepts and processes,
or seeking to improve upon
SUBSCRIBE
existing technologies, should
consider the relief.
Our dedicated team at Azets
can identify qualifying R&D
projects and how businesses
can benefit from tax savings.
We have extensive expertise
in R&D Tax Credits, having
been involved since the tax
relief was first introduced by
TO SCOTLAND’S
HMRC in 2000.
We are part of the HMRC LEADING
R&D Consultative Committee
and regular commentators in BUSINESS
the R&D Community.
MAGAZINE
Since 1984, Insider has been publishing in depth business
information. To keep yourself up to date with the latest
business intelligence for only £24.00 per year. Contact us on
0800 141 3347 or email subscriptions@insider.co.uk or
alternatively visit www.insider.co.uk/subscribe.
www.azets.co.uk
www.insider.co.uk
 %86,1(66352),/(

 


 





 










 

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+++$#')!(#)
NEWS: BRIEFING
News and quotes compiled by Ken Symon
Basis Technologies wins $25m investment
SCOTTISH Equity Partners
(SEP) has completed a $25m
growth equity investment in
Basis Technologies, a software
developer for cloud computing.
Organisations around the
world use Basis Technologies’
DevOps technology to
support the transition from
legacy premises-based SAP
software to modern cloud-based
SAP systems.
The software aims to increase
business agility through the
fast, effective delivery of
business innovation.
It currently provides the only
automated DevOps and testing
platform engineered for SAP.
Its global enterprise customers
include BP, Procter & Gamble
and Booking.com.
The software’s aim is to help
customers accelerate time to
market, adopt new development
methods and increase
productivity.
Basis Technologies has
experienced significant growth in
recent years and investment from
SEP will enable the company
to further accelerate product
development and increase
adoption of its industry-leading
software through expansion
New rules for prepack administrations
NEW RULES that came into
force at the end of April will
have a major impact on
company directors seeking
to restructure their business
through prepack administrations.
The warning comes from Derek
Forsyth, head of restructuring in
Scotland with accountancy firm
Azets, on new legislation that
came into force on 30 April.
Prepack administrations have
been used during the pandemic
to seek to save businesses that
would otherwise go under.
The new rules will seek to
impose a new eight-week
window in which the assets of an
insolvent business cannot be sold
to a connected party without the
consent of creditors, or a report
from an independent evaluator
8 INSIDER May 2021
Martin Metcalfe,
Basis Technology
of global sales and partnership
capabilities.
The company employs more
than 70 people, with headquarters
in Richmond and additional
offices in the US, Australia,
Germany and Hungary.
The investment will support the
company to further enhance its
proposition to address a $1.5bn-
plus per annum global enterprise
DevOps for SAP market.
Basis Technologies CEO
Martin Metcalf said: “We are
delighted to have SEP on board
as our investment partner.
“We look forward to working
together to expand our product,
sales and delivery capabilities and
to bring our pioneering DevOps
Derek Forsyth,
Azets
recommending the prepack is in
the best interests of creditors.
Such a report would be
prepared by an evaluator chosen
by the purchaser and will be
made available to the creditors.
Administrators will have
to justify to the creditors if
they decide not to follow the
recommendations.
Forsyth said: “Prepack
automation solutions to more
SAP users across the globe.”
SEP partner Keith Davidson
said: “Basis Technologies is
ideally positioned to benefit
from the increasing need to
adopt DevOps within SAP
environments as businesses
transition to the cloud and SAP’s
new offerings.
“The company has an excellent
reputation, puts its customers
first and has significant
experience delivering innovative
automation software to
organisations using SAP.
“We are pleased to be
partnering with the team at
Basis to help them achieve their
strategic growth goals.”
insolvencies are a valuable
restructuring option for
businesses weighed down by debt
that could otherwise be viable
through a restructure but are not
capable of continuing to trade
whilst the administrator markets
the business for sale.
“Although it is expected
the new legislation will offer
greater transparency to
creditors, there is some concern
around the qualifications
required of the evaluator chosen
by the purchaser.
“Whilst this could potentially
be problematic, we expect this
issue will be resolved relatively
quickly, with individuals
with the required insolvency
experience being identified as
credible evaluators.”
IN BRIEF
CYS becomes
employee-owned
Scottish architects firm
Camerons Strachan Yuill
Architects (CSY Architects) has
become an employee-owned
business. CSY Architects has set
up an Employee Ownership Trust
that will become the controlling
shareholder of the company.
It will allow the firm’s 24 staff,
who work across offices in
Edinburgh, Dalkeith, Berwick
and Galashiels, to collectively
take ownership of the firm.
The move to employee
ownership was funded by a
loan from Triodos Bank UK and
support from Co-operative
Development Scotland and
employee ownership specialists
Co-ownership Solutions.
CSY Architects managing
director Douglas Strachan
said: “As a practice, we are
committed to a local service for
the communities we serve. By
transitioning to an Employee
Ownership Trust, we’re ensuring
our values remain at the heart
of everything we do.”
Gleneagles to add
summer sparkle
The iconic Gleneagles Hotel
in Perthshire had a “roaring
reopening” for guests on
Monday 26 April. Following
the Scottish Government
announcement about the
reopening of hospitality,
Gleneagles said it was aiming
to bring the ‘sparkle and joy of
the Roaring Twenties’ into its
reopening plans.
The summer plans include
a month-long series of
festivities for ‘Jubilant June’
and the return of the Explorers
Kids Club from July. From
June onwards the American
Bar will host live jazz from
Thursdays to Saturdays.
Head chef Stefano Purci
and his team are also offering
lunchtime pasta-making
masterclasses from Mondays to
Thursdays in the Winter Garden.
Gleneagles is also expanding
its outdoor experiences with
off-road guiding tours in the
estate’s fleet of Defenders.
www.insider.co.uk
 %86,1(66352),/(


 









 










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#



#
BUSINESS PROFILE
LEAVING A CLIMATE SOLUTIONS LEGACY
What kind of world do we want to leave
to our children, and for that matter, future
generations to come?
This is the question we should be asking
ourselves, as Kofi Annan, former chair of the elders,
UN Secretary General, and Nobel peace laureate,
did before he passed away in 2018. He said: “I
cannot say I am very proud of what my generation
has done and what we are going to leave, but we
still have time to do something, and we cannot
afford to fail.”
Climate Solutions is a new online learning
opportunity which aims to educate middle
and senior business leaders and managers on
climate change, outlining the actions that can
be taken to mitigate the impact before it is too
late. A collaboration between the Royal Scottish
Geographical Society (RSGS), University of
Edinburgh, University of Stirling, and Institute
of Directors (IoD) Scotland, Climate Solutions
addresses many common questions raised such
as ‘What does it mean for our business?’, ‘How do
we respond?’, ‘How can we plan and prepare?’, and
‘What are the risks and opportunities?’
Climate change expert and Chief Executive of
RSGS, Mike Robinson, is the innovator behind
the course which, in simple terms, aims to “raise
awareness of the issue in a straightforward,
time-efficient way.” He adds: “Climate change will
increasingly define this next decade for businesses
and policy makers. Every manager should have a
minimum basic knowledge and understanding of
this critical and wide-reaching issue if they want to
operate a successful business.”
Climate Solutions provides a quick, simple, and
rounded introduction to the fundamentals of
SIGN UP NOW for this new online learning opportunity by visiting
www.rsgs.org/climate-solutions, or to find out more VISIT www.climatesolutionsnetwork.com
climate change, helping explain how everyone
and every organisation can play a role to reduce
their emissions, and informing businesses and
organisations so they can better plan and predict
future trends, legislation, and change. It focuses
on the need-to-know information, and most
importantly, outlines the key solutions managers
can implement to respond to climate change.
Sarah Graham, Sustainability Executive at
Edrington, who recently completed the course
said:
“It really served to increase my confidence
in terms of bringing me up to speed with all
the latest information around climate change.
However, the most important aspect for me
was that it clearly spelt out many of the positive
climate solutions available for businesses to take
Kofi Annan
Mike Robinson
NEW ONLINE
LEARNING
OPPORTUNITY
advantage of today, and why they make business
sense. That really helped me when I was forming
the sustainability strategy for The Famous Grouse
brand.”
Climate Solutions is offered in two ways: Climate
Solutions Professional and Climate Solutions
Accelerator.
Climate Solutions Professional
Climate Solutions Professional consists of
four online modules lasting two to three
hours long. The four modules will short-cut
vast amounts of literature and learning,
provide a good basic understanding of
the science, and focus on the minimum
essential information needed to respond.
On completion of the modules, participants
will attend an online workshop delivered by
expert project partners, in which participants
will start to develop the Climate Action Plan
for their business. On completion of the
course, participants will receive a certificate
evidencing their personal and organisational
commitment to climate change. The cost is
£300 including VAT per person.
Climate Solutions Accelerator
The Climate Solutions Accelerator course is for
those short on time, lasting just 90 minutes.
Managers will learn direct from the world’s
leading experts the practical solutions they
can implement to help tackle climate change.
On completion of the course, managers will
receive a personalised RSGS certificate. The
cost is £120 including VAT per person.

Marine marvel as platform goes Forth
ONLOOKERS at the Forth
Estuary were treated to a
spectacular sight on a mid-April
weekend as one of the most
remarkable marine operations
undertaken on the river unfolded.
In an operation spanning two
days, Allseas’ Pioneering Spirit –
the world’s largest construction
vessel at 382 metres long and
124 metres wide – transferred its
huge cargo of a topside drilling
platform onto the 200-metre-
long cargo barge, the Iron Lady.
The following morning the
Pioneering Spirit separated from
the Iron Lady and the cargo barge
was towed clear.
With its cargo safely secured
to its deck, the Iron Lady was
then towed westwards along the
River Forth by Forth Ports’ tugs
– the Craigleith, Inchkeith and
Nova launches sea-powered car charging
LEADING tidal energy company
Nova Innovation has created
the first electric vehicle charge
point where drivers can fuel their
vehicles with the power of the sea.
Electric vehicle (EV) drivers in
Shetland can now ‘fill up’ directly
from a tidal energy source.
The EV charge point is located
on the scenic shores of Bluemull
Sound, at Cullivoe harbour on
the island of Yell in Shetland.
Beneath the water, Nova’s tidal
turbines have been powering
homes and businesses in
Shetland for more than five years.
QUOTE UNQUOTE
“There is growing
concern that
government
financial support
could be propping
up ‘zombie’
businesses.”
Ken Pattullo of insolvency firm
Begbies Traynor
www.insider.co.uk
Fidra – ensuring the structure
had sufficient clearance to transit
below the Forth Bridge, Forth
Road Bridge and finally under
the Queensferry Crossing before
berthing at the port of Rosyth.
It is scheduled to remain
moored at Rosyth for six weeks
before being towed back east, to
The island’s vehicles can now be
powered purely by the tide.
Nova Innovation CEO
Simon Forrest said: “Our
technology generates electricity
from the immense power of
the seas, and it is changing
Book Review
Title: On Board
Writer: John Tusa
Publisher: Bloomsbury
Price: £20
This is a book on boards like no other
I have read. Former BBC Newsnight
presenter turned media and arts
board non-exec Sir John Tusa has
written the perfect anecdote to the
typical celebrity memoir.
It takes you into the boardrooms of
Rating out of five: ★★★★★
the Energy Park Fife in Methil
where its cargo will be unloaded
for decommissioning.
Forth Ports chief operating
officer Stuart Wallace said: “It
was a truly spectacular sight to
see this huge vessel offloading its
cargo within our deep water on
the River Forth..”
the way we power our lives –
from how we make a cup of tea
to how we travel.
“We now have the reality
of tidal-powered cars, which
demonstrates the huge steps
forward we are making in
tackling the climate emergency
and achieving net zero by
working in harmony with our
natural environment.”
The Nova project has received
grant funding through Transport
Scotland to install the EV
charging infrastructure as part of
the clean energy transition.
bodies like the British Museum and
American Public Radio.
He relates real experience from
personal squabbles to financial crises
and gives a great guide to what you can
expect when you enter the boardroom.
An excellent read.
NEWS: BRIEFING
IN BRIEF
Companies flout
flexible working
Three in four job adverts in
Scotland still offer no flexible
working options despite
pandemic-induced major
changes in ways of working.
The research was conducted
by flexible working specialists
Timewise, who analysed
375,000 Scottish job vacancies.
By flexible working,
Timewise means anything
other than full-time roles based
in the workplace.
Pre-pandemic, 27% of Scottish
employees worked part-time
and 46% of employees worked
flexibly in some way.
But, since the start of the
pandemic, flexible working has
increased dramatically.
The proportion of employees
working from home some of
the time jumped from 18%
pre-pandemic to 61% during
the first lockdown in 2020.
Yet, Timewise, said, the
recruitment market was failing
to keep pace with the changes
happening in workplaces.
Only 24% of jobs offer the
types of flexible working
options so many people need,
the research suggests.
Angel syndicates
top £25m for year
Scotland’s business angels
syndicates’ investments in
the final quarter of 2020 were
double those in the third
quarter, new research shows.
Business angel network
LINC said that brought total
investment by the angel
syndicates for the year to £25m,
just a little short of the record
£26.9m reached in 2019.
In the early months of 2020,
angel investment continued at
high levels but, as the Covid-19
restrictions started to impact,
investment level fell but not by
as much as had been feared.
Angel syndicates were also
able to help many portfolio
companies secure funding
from Scottish Enterprise’s Early
Stage Growth Challenge Fund,
set up in response to the Covid
pandemic and awarded as a mix
of convertible loan and grant.
May 2021 INSIDER 11
SHARES: SCOTLAND’S QUOTED COMPANIES

information provided by

Positive picture developing as

market emerges from pandemic
Ken Symon’s regular digest of Scottish stock performance

A
FTER years in which the stock of Biggest risers McArthur, the company’s chief executive sold
Scottish quoted companies has been an 434,783 shares, raising £500,000.
NAME % CHANGE 1 MTH
ever-reducing number, there has been a The increased capital gives the cloud computing
rise in activity with three listings on the CRANEWARE PLC 16.28 and connectivity business firepower for more
Alternative Investment Market in recent months. IDE GROUP HOLDINGS 12.5 mergers and acquisition activity, which market
The IPO of Calnex Technology, the BEEKS FINANCIAL CLOUD GROUP 11.3 observers have been predicting since the company
WEIR GROUP PLC 9.54
Lintlithgow-based technology testing business, in appointed Kevin Covington, a non-executive
OMEGA DIAGNOSTICS 6.21
October has been followed by market debuts of MACFARLANE GROUP PLC 5.37
director with M&A experience to its board.
AMTE Power, the electric battery manufacturer, ALLIANCE TRUST PLC 5.17
Beeks said at the time of his appointment it was
and Edinburgh-based ready-meal company A. G. BARR PLC 4.89 seeking to deliver its cloud services to “a growing
Parsley Box, both in March. RUA LIFE SCIENCES PLC 4.59 global customer base”.
It is a much more positive stock market picture STAGECOACH GROUP PLC 4.58 Our biggest faller was what is a new name in
as Mike Timmins, EY partner and Scotland IPO our coverage of Scottish quoted companies this
leader, highlighted in the firm’s IPO Eye report. time: Harbour Energy.
He said: “With an effective vaccine rollout under Biggest fallers Unfortunately, it starts with a negative story,
way, momentum and confidence in the UK IPO NAME % CHANGE 1 MTH having fallen more than 14 per cent over the past
market should continue to build, but future month. The company, which was formed by a
HARBOUR ENERGY* 14.29
growth may vary depending on the sector.” merger of Premier Oil Plc and Chrysaor, listed on
BRAVEHEART INVESTMENT 12.77
This healthier picture is matched in some PLEXUS HOLDINGS PLC 5.88
the main market from 1 April.
increased share prices as the economy begins to LANSDOWNE OIL AND GAS PLC 2.78 A significant new player in the market,
emerge from the effects of the pandemic and its JOHN MENZIES PLC 2.11 Harbour describes itself as “a global independent
associated restrictions. IOMART GROUP PLC 2.08 oil and gas company, producing over 200,000
Craneware, the Edinburgh-based healthcare STANDARD LIFE ABERDEEN 1.69 barrels of oil equivalent per day from the North
specialist leads the biggest risers this time on the CAIRN ENERGY PLC 1.29 Sea and south-east Asia”.
back of increased sales to hospitals in the US. FIRST GROUP 1.14 The company reports a loss before tax of
The AIM-listed shares experienced a 16 per NATWEST GROUP 1.02 $605m for the year ending 31 December 2020,
cent plus rise as it reported better full-year market *formerly Premier Oil, now merged with Chrysaor
compared to a $102.50 profit before tax the year
expectations for the year, with revenue of $74m before as the effects of the pandemic markedly hit
and adjusted earnings of $25.3m. the demand for oil.
Revenues and adjusted earnings for the six The second-biggest fall was experienced by
months ended 31 December were more than
five per cent up on the first half of the prior year, With an effective Braveheart Investments, which saw a near
13 per cent fall over the period, thought
when revenue was $35.9m and adjusted earnings
stood at $12.7m. vaccine rollout under to be as a result of significant profit-taking by
some shareholders.
Craneware provides pricing and billing
systems to US hospitals and has had a “strong
way, momentum and This followed the previous time’s marked rise
of more than 57 per cent with the news from
performance’ against the backdrop of the
pandemic and a volatile exchange rate with the
FRQğGHQFHLQWKH8. Braveheart investee company, Paraytec that it had
seen “significantly better” results for its early stage
dollar. Its performance has also seen a customer
retention rate of more than 90 per cent.
IPO market should test for coronavirus.
This means that the Scottish-registered
Beeks Financial Cloud Group saw an 11 per
cent plus rise in its shares as it continues its
continue to build, but investment company, which currently has a total
of six investments, has retained a significant part
expansion drive. The Glasgow-based fintech future growth may vary of its increased capitalisation as shareholders

depending on sector
business in April raised an additional £5m in hope for further good news from Paraytec as it
capital through a placing of 4.3 million new seeks Medical and Healthcare Regulatory Agency
shares at a 115 pence a share. In addition, Gordon approval for its Covid-19 test. ■
12 INSIDER May 2021 www.insider.co.uk
 SHARES: SCOTLAND’S QUOTED COMPANIES

Main Market
LIST MARKET* SHARE PRICES
DATE VALUE (£m) SECTOR 5 YEARS AGO 1 YEAR AGO LAST MONTH THIS MONTH % CHANGE
A.G. BARR P.L.C. 02/04/1970 576,949 FOOD & TOBACCO MANUFACTURING 5.60 5.19 4.91 5.15 4.89
ABERDEEN DIVERSIFIED TRUST PLC 24/03/1952 299,715 BANKING, INSURANCE & FINANCIAL 1.22 1.00 0.95 0.97 1.79
ABERFORTH SMALLER CO. TRUST PLC 10/12/1990 1,368,110 BANKING, INSURANCE & FINANCIAL 10.48 12.48 15.02 15.42 2.66
AGGREKO PLC 29/09/1997 2,232,161 METALS & METAL PRODUCTS 10.87 6.26 8.77 8.72 -0.63
ALLIANCE TRUST PLC 17/07/1947 3,095,016 BANKING, INSURANCE & FINANCIAL 5.07 9.01 9.29 9.77 5.17
ASIA DRAGON TRUST PLC 07/09/1987 671,520 BANKING, INSURANCE & FINANCIAL 2.49 5.28 5.16 5.36 3.88
BAILLIE GIFFORD JAPAN TRUST PLC 14/12/1981 1,036,279 BANKING, INSURANCE & FINANCIAL 4.51 11.04 10.66 11.14 4.50
BAILLIE GIFFORD SHIN NIPPON PLCY 01/07/1985 772,691 BANKING, INSURANCE & FINANCIAL 0.93 2.67 2.38 2.49 4.62
BLACKROCK SMALLER CO. TRUST PLC 25/03/1973 923,860 BANKING, INSURANCE & FINANCIAL 9.00 17.40 17.86 18.92 5.94
BMO PRIVATE EQUITY TRUST PLC 22/03/1999 295,766 BANKING, INSURANCE & FINANCIAL 2.50 3.08 3.72 4.00 7.53
CAIRN ENERGY PLC 838,770 MINING & EXTRACTION 2.65 2.48 1.70 1.68 -1.29
DEVRO PLC 30/06/1993 325,551 FOOD & TOBACCO MANUFACTURING 2.79 1.54 1.93 1.95 0.93
DUNEDIN INCOME GROWTH INV. TRUST PLC 21/11/1949 452,643 BANKING, INSURANCE & FINANCIAL 2.24 2.91 2.92 3.06 4.62
EDINBURGH WORLDWIDE INV. TRUST PLC 1998 1,436,368 BANKING, INSURANCE & FINANCIAL 0.89 3.70 3.28 3.63 10.67
EP GLOBAL OPPORTUNITIES TRUST PLC 15/12/2003 108,854 BANKING, INSURANCE & FINANCIAL 2.34 2.84 2.88 2.92 1.22
FINSBURY GROWTH & INCOME TRUST PLC 24/12/1953 2,041,289 BANKING, INSURANCE & FINANCIAL 5.86 8.75 8.62 9.11 5.68
FIRSTGROUP PLC 16/06/1995 1,111,711 TRANSPORT, FREIGHT & STORAGE 1.00 0.74 0.92 0.91 -1.14
HARBOUR ENERGY PLC 3,554,045 MINING & EXTRACTION 0.74 0.20 0.22 0.19 -14.29
JOHN MENZIES PLC 03/10/1962 273,152 RETAIL 4.98 2.63 3.31 3.24 -2.11
JOHN WOOD GROUP PLC 05/06/2002 1,877,102 BUSINESS SERVICES 6.25 3.10 2.71 2.73 0.78
LLOYDS BANKING GROUP PLC 30,334,826 BANKING, INSURANCE & FINANCIAL 0.67 0.36 0.43 0.43 0.65
MACFARLANE GROUP PLC 20/06/1973 170,437 TRANSPORT, FREIGHT & STORAGE 0.69 0.88 1.03 1.08 5.37

Alternative Investment Market

LIST MARKET* SHARE PRICES
DATE VALUE (£m) SECTOR 5 YEARS AGO 1 YEAR AGO LAST MONTH THIS MONTH % CHANGE
BEEKS FINANCIAL CLOUD GROUP PLC 27/11/2017 66,180 BUSINESS SERVICES N.A. 0.95 1.15 1.28 11.30
BOWLEVEN PLC 07/12/2004 15,360 MINING & EXTRACTION 0.22 0.04 0.05 0.05 0.00
BRAVEHEART INVESTMENT GROUP PLC 30/03/2007 23,553 BANKING, INSURANCE & FINANCIAL 0.07 0.28 0.71 0.62 -12.77
CALEDONIAN TRUST PLC. 29/09/1995 14,612 PROPERTY SERVICES 1.06 1.53 1.24 1.24 0.00
CELTIC PLC 22/12/2005 108,501 TRAVEL, PERSONAL & LEISURE 0.74 1.01 1.15 1.15 0.00
CRANEWARE PLC 13/09/2007 670,663 COMPUTER SOFTWARE 7.95 23.00 21.50 25.00 16.28
FRONTIER IP GROUP PLC 21/09/2007 40,704 PROPERTY SERVICES 0.29 0.66 0.72 0.74 2.78
GOALS SOCCER CENTRES PLC 07/12/2004 20,458 TRAVEL, PERSONAL & LEISURE 0.95 N.A. N.A. 0.27
IDE GROUP HOLDINGS PLC 30/06/2010 7,214 MEDIA & BROADCASTING 0.40 0.01 0.02 0.02 12.50
IOMART GROUP PLC 19/04/2000 335,710 COMPUTER SOFTWARE 2.71 3.20 3.13 3.07 -2.08
LANSDOWNE OIL & GAS PLC 21/04/2006 7,644 MINING & EXTRACTION 0.02 0.01 0.01 0.01 -2.78
OMEGA DIAGNOSTICS GROUP PLC 18/03/2004 156,097 BUSINESS SERVICES 0.16 0.65 0.81 0.86 6.21
PLEXUS HOLDINGS PLC 09/12/2005 16,070 INDUSTRIAL & ELECTRONIC MACHINERY 0.62 0.18 0.17 0.16 -5.88
RUA LIFE SCIENCES PLC 18/12/2002 32,833 INDUSTRIAL & ELECTRONIC MACHINERY 0.23 1.52 1.42 1.48 4.59
SIGMA CAPITAL GROUP PLC 27/04/2000 133,591 PROPERTY SERVICES 0.93 1.31 1.49 1.49 0.00
SMART METERING SYSTEMS PLC 08/07/2011 937,352 CONSTRUCTION 4.06 7.11 8.30 8.30 0.00
SPACEANDPEOPLE PLC 31/12/2004 2,001 BUSINESS SERVICES 0.60 0.07 0.10 0.10 2.50
SPRINGFIELD PROPERTIES PLC 16/10/2017 143,768 CONSTRUCTION N.A. 1.35 1.45 1.42 -2.07
ZINC MEDIA GROUP PLC 30/07/2001 8,780 MEDIA & BROADCASTING 8.75 0.53 0.58 0.55 -5.17
*Figures to close of market Thursday, April 15, 2021

www.insider.co.uk May 2021 INSIDER 13

INSIDER: CREATIVE
Insider’s regular focus on Scotland’s creative sector by Ken Symon
IN BRIEF
Beattie rebrands
as Tigerbond and
moves to London
PR agency Beattie
Communications has rebranded
as Tigerbond and has relocated
to London.
The move followed a row in
which founder Gordon Beattie
posted a “tone deaf” social
media post which was accused
of being racist and homophobic.
The company said it has
retained its existing client
book, team and office network
across the UK, Ireland and
North America.
The agency announced that
managing director Laurna
Woods and her leadership
team were taking over the
agency, which has offices
in Uddingston, London,
Manchester, Leeds and Belfast.
Gordon Beattie is still chairman
of Only Marketing which was a
sister company to Beattie Media.
£27,000 digital
media prize funds
A £27,000 prize fund for
digital media content creators
has been launched at a
Scottish university.
George Mackintosh, the
Scottish tech entrepreneur, has
created the Papple Steading
Digital Media Prize competition
to support students and recent
alumni of Queen Margaret
University in Edinburgh.
Students have been tasked
with producing engaging digital
media content celebrating
Lothian and Scotland’s
contributions to global
agriculture between the 18th
and 20th centuries.
The winning works will be
displayed at Papple Steading’s
agricultural heritage museum.
Mackintosh bought Papple
Steading, one of Britain’s
historic “model farms” of the
agricultural improvement
movement, in 2017.
Mackintosh plans for the
development of Papple
Steading in East Lothian to
feature an agricultural heritage
museum, business destination
and a community centre.
14 INSIDER May 2021
How media training was revamped for ‘new normal’
F
OR JOHN Morrison,
owner of Morrison Media,
the first Covid lockdown
meant part of his business
falling off a cliff.
An important strand of the
business of the PR agency owned
by the former BBC TV News
Scotland correspondent was media
training for many businesses and
other organisations.
The training focused on TV
complete with camera, so it
was all done in person with the
individual or a small group.
But, with Covid-19 rules
meaning people could no longer
travel and or be in the same room,
the media training was effectively
just switched off.
“All our media training was done
face to face with a professional
broadcast camera operator and
camera equipment so it gave a real
feel of what was happening, but all
of that came to an end in March,”
Morrison explains in his familiar
Gaelic tones. Attendance is 100 per sorting their camera and some
people are very good at getting a
“It was August before we began
to get enquiries about whether we
cent, people tune in nice row of books or very pleasant
bookshelves behind them.
were able to deliver anything like
the training we had done.”
quickly and feedback “Some people just don’t pay any
attention to it all and we remind
Morrison says they worked
with IT people to look at how they
is just as positive them all the stuff behind you does
give an insight into your own
could deliver training and came up
with a way of doing it over Zoom.
as it was before house, so pay attention to that.”
“We do a rigorous interview,
He points out that many play it back to them, then look at
television broadcast interviews Morrison says the content and how they could have answered the
and panel discussions are now approach to the training is similar, questions better. Then we repeat.”
done via that medium and, although the in-person element Morrison says that, from
therefore, they would again has gone. September, the media training
deliver training close to the reality The approach involves a package business he feared had
of what people would experience. explaining the media using slides, disappeared was back to pre-
Now Morrison does all the clips of TV and radio broadcasts Covid turnover levels.
company’s media training from his and then interview training. The new ways of doing things
home in Glasgow’s west end, where “When we’re doing the radio have also opened up opportunities
he also contributes to a Saturday training we switch off the camera for seminars on the media, which
morning sports programme on a on both sides and give people a Morrison and those being trained
Gaelic radio station. feel they are in the radio studio. can do from their own base rather
He says the technology is easy Then we can record it, play it back than having to travel.
to operate. “I have an app on my and analyse it.” “When I used to deliver
iPhone and I have a broadcast- Morrison says that, like previous training for one client in London
quality mic I plug into it and off face-to-face training, they can I would have to fly down the night
I go, and I can broadcast almost replicate the real feel of a broadcast before, so you have the cost of the
perfect sound quality for an hour. interview. “It’s exactly the same as return flight and the hotel room
So the technology has opened up if they were being interviewed by for the night and all the other
all these possibilities. Reporting Scotland, the Six O’Clock travel and expense.
“So, when we were watching News, Newsnight. “But now we all just turn up,
people interviewed, whether on “One of the things we teach is attendance is 100 per cent, people
Zoom or [Microsoft] Teams, we how to set themselves up. I don’t can tune in quickly and the
thought we can deliver the training know if you notice but some interesting thing is the feedback
on that, and it has worked well.” people are better than others at just as positive as before.” ■
www.insider.co.uk

CREATIVE VIEW Allan Rennie
Calling to account Facebook and its monopoly power
In 1912, Louise D Brandeis, the
godfather of American’s antitrust laws,
said all monopolies were born out of
“ruthless practices or by an improper
use of inordinate wealth and power”.
Brandeis slated US robber barons
such as American Tobacco and The
Standard Oil Company for abusing
their power and influence to buy up
rivals who threatened their dominance.
In doing so, they kept prices and
profits artificially high. Good news for
shareholders, bad news for consumers.
The Sherman Antitrust Act, The
Clayton Act and the Federal Trade
Commission all combined to break up
these giants and end their stranglehold
of the tobacco and oil industries.
More than 110 years later, Mark
Zuckerberg’s Facebook, a $800bn
big-tech monopoly, is in the dock on
the same antitrust breaches that led to
the demise of American Tobacco and
Standard Oil.
The FTC and 46 states are suing
Facebook for systematically buying
up competitors – including WhatsApp
for $22bn and Instagram for $1bn –
with the specific aim to liquidate the
competition. If you can’t beat them,
buy them. They may all appear to be
different platforms, but they share an
ocean of data.
And it is that control of data, the new
oil, that power the algorithms that
fuel Zuckerberg’s profits. Nearly three
billion people use Facebook every
month and, of the $27bn of revenue in
the final quarter of last year, 99 per cent
came from advertising.
The FTC legal machinations will take
years before reaching a Federal court
and separating the siblings from their
parent company will not be easy – a bit
like rewiring the Starship Enterprise.
If found guilty, Facebook would
be forced to sell off WhatsApp and
Instagram, who would then become
full-blown independent competitors.
Zuckerberg cultivates an image of
a movement born in a college dorm
that helps bring the world closer
together. What’s not to love about a
free social media service that connects
you to friends and family, that binds
communities together?
The star witness in the case to break
up the social network is Zuckerberg
himself. According to the lawsuit, he
revealed in a 2008 email: “It is better
to buy than compete.” Celebrating the
purchase of Instagram, he admitted:
www.insider.co.uk
“Instagram was our threat.” Meanwhile,
Instagram co-founder Kevin Systrom
feared Zuckerberg “would go into
destroy mode” if he did not sell.
At an antitrust hearing, Congressman
Jerry Nadler said: “Facebook, by its own
admission, saw Instagram as a threat
that could potentially siphon business
away from Facebook. So, rather than
compete with it, Facebook bought
it. This is exactly the type of anti-
competitive acquisition the antitrust
laws were designed to prevent.”
Zuckerberg’s denies accusations of a
monopoly in the market, pointing to
competitors such as TikTok, Twitter and
Linkedin and China’s WeChat. But, out
of the world top 10, his own platforms
rank one, two and three.
His mantra that big does not mean
bad is at odds with a string of scandals
that have plagued the platform over
data abuse, fake news and hate speech:
Fined for illegally allowing
Cambridge Analytica to harvest
the private data of 96 million users;
accused by the UN of being complicit
in genocide in Burma for spreading
anti-Muslim hate speech; vilified for
allowing the mosque massacre in New
Zealand to be livestreamed; blamed
by a grieving father for the suicide of
14-year-old Molly Russell, who viewed
images of self-harm on Instagram.
In the UK they face a crackdown
by competition watchdogs who say
their market dominance threatens the
newspaper industry. Of £14bn spent
on digital advertising in the UK, 80% is
swallowed up Facebook and Google.
The consequence of this dominance
is that news brands are struggling
to fill the chasm in print circulation
and revenue decline with new digital
business models – and fund the
journalism that drives not just their
profits but those of what one editor
called “big-tech parasites”.
The Government is setting up
the Digital Markets Unit after an
investigation by competitions
watchdog the CMA into the digital
advertising industry. They say Facebook
and Google “have such unassailable
market positions that rivals can no
longer compete on equal terms”.
However, the chilling proof
for many of Facebook’s abuse of
monopoly power was Zuckerberg’s
petulant reaction to new Australian
Government laws to ensure they
pay for content they plunder from
publishers. In retaliation, he made the
“difficult decision” to block millions
Down Under from accessing not just
news brands, but charities, women’s
rights groups and Covid-19 health sites.
Damning evidence that Facebook
put profits before public interest,
according to legislators.
David Cicilline, chair of the US House
of Representatives antitrust committee,
said: “If it is not already clear, Facebook
is not compatible with democracy.
“Threatening to bring an entire
country to its knees to agree to
Facebook’s terms is the ultimate
admission of monopoly power.
Their ability to dictate terms, call the
shots, upend entire sectors, and
inspire fear represent the powers
of a private government.”
At the root is a problem common
to any company that witnesses rapid
growth in a short space of time –
remember Facebook is only 17 years
old – and that is lack of control.
Corporate governance and risk
management principles that worked
for a start-up that served just 2000
students in Cambridge, Massachusetts
in 2014 do not work for a tech giant
serving a global audience in the
pandemic world of 2021.
Zuckerberg may be well-meaning but
has he built a Frankenstein’s monster?
Too big, out of control and whose
original purpose has been blinded by a
hunger for profits and growth.
Facebook may not be going away any
time soon. But it is no different from
monopolies such as American Tobacco
and Standard Oil, whom Brandeis
described as “clumsy dinosaurs”.
And we all know what happened to
the dinosaurs.
Allan Rennie is honorary professor of
Media Studies at the University of Stirling
and an associate director of public
relations company Hollicom
INSIDER: CREATIVE
ON THE MOVE
Neil McIntosh in April took
up his role as editor of The
Scotsman as the new owners
of JPI Media made changes
in the group’s titles. McIntosh
moved to the role from that
of managing editor of BBC
Online. He began his journalistic
career at the Edinburgh Evening
News and The Scotsman before
moving onto The Wall Street
Journal and The Guardian.
Management changes at
Scottish social media agency
Hydrogen sees Nicky Logue
(above) becoming managing
director, moving up from her
role as strategy director. Agency
founder Mike Scott becomes
chief executive and co-founder
Daniel Rae becomes chief
innovation officer. Scott said:
“While Daniel and I will still play
an active role in delivering the
Hydrogen services, I am excited
about the business prospects in
2021 and I’m looking forward to
seeing Hydrogen flourish with
Nicky at the helm.”
The Press and Journal has
appointed Andy Philip as
political editor. Philip moves to
the paper from the Daily Record
where he was live politics
editor. The move was part of
a DC Thomson campaign for
greater digital engagement
with its readers.
Glasgow-based creative agency
Made Brave has appointed
two directors. Jenny Plant, the
healthcare specialist, and Philip
Lancaster, a former WPP team
leader, have joined the board
as the agency seeks to grow its
international presence.
Jane Robertson has joined
online mental wellness platform
company Frog Systems as
director of communications.
A former BBC and Sky Sports
presenter, Robertson moved
to the Glasgow start-up from
cloud computing firm iomart.
May 2021 INSIDER 15
THE BURNING:QUESTION
The burning question
Q
NO
Has Covid-19 done irreparable damage
to Scotland’s hospitality sector?
Roland Smyth
head of the Scottish
Hotels & Leisure
Group
international law firm
CMS
Hospitality businesses support hundreds
of thousands of Scottish jobs and, with the
sector and government working closely
together, the sector can and will recover.
While we cannot overstate the pandemic’s
hugely damaging impact, there are reasons
to be optimistic. Scottish hospitality was
thriving before Covid. The vaccination
programme, easing of lockdown and an
expected increase in UK domestic holidays
this summer should bolster many businesses
that have survived. Further support will,
however, be critical going forward.
MAYBE
Leah Hutcheon
founder
Appointedd
Undoubtedly Scotland’s hospitality sector
has suffered with Covid-19, but we have
seen some real innovation throughout the
sector which may deliver permanent new
income streams.
For example, Appointedd works with
hotel groups who have been creative with
their venues; encouraging much smaller
events via bookable tours of event space.
Also, we have seen office space offered in
hospitality venues, utilising bedrooms or
shared lobby facilities to meet the new,
flexible way of working.
If you would like to contribute to the Burning Question or suggest topics please email editor@insider.co.uk
CMS - local insight and global perspective
cms.law/scotland
16 INSIDER May 2021
NO
David Hay
managing director
Compass Scotland
The hospitality industry will recover, but
to do it well we need to ensure the next
generation of talent is nurtured and
retained, so our recovery is sustainable in
the long term.
Hospitality has always been a good
career choice in Scotland and we need
to keep apprenticeships and training
high on the agenda, to create opportunities
for all in an exciting industry.
Building a highly skilled workforce
should be central to any recovery plan
after the pandemic.
NO
Carol Matthews
visitor experience
manager
Loch Lomond
& The Trossachs
National Park
There is no doubt tourism has been hit
very hard. It will not bounce back but it will
rebuild steadily and with a new outlook.
Clearly, rural tourism is in a very different
position from city and urban tourism.
The feedback from local businesses varies
depending on product type and market.
Those who catered to overseas tourists are
challenged more than those who previously
secured, or who can adapt to attract,
domestic visitors. The sector is beginning
to see bookings and has to be positive in its
marketing to give customers confidence.
Q in association with
MAYBE
bounce back.
Stuart Patrick
chief executive
Glasgow Chamber of
Commerce
When restrictions are finally lifted, I
don’t doubt the sector as a whole will
Hospitality has relatively low barriers
to entry so we can expect new entrants
to carry on emerging.
However, some businesses simply will
not have the financial resources to survive
and the impact will be terminal.
We also risk losing some well-loved
businesses as a result of entrepreneurial
characters – who are usually incredibly
resilient – deciding to call it a day.
NO
Jane Rennie
founder & CEO
The Extraordinary
Training Company
Devastating, yes. Irreparable, no. I would
rather look positively on the future,
respond to the challenges and seize new
opportunities. Customers may be slow to
return to old habits, and crowded venues
and businesses will have to reimagine the
customer experience to re-engage, build,
and maintain their trust.
The Covid-19 pandemic will eventually
fade, the economy will recover and the
Scottish tourism and hospitality sector
will bounce back and move forward with
confidence to a successful, thriving future.
www.insider.co.uk

HARNESSING THE
DEVELOPING NEEDS
OF CLOUD ADOPTERS
A whole service sector is growing up around
the developing needs of cloud adopters,
including many examples here in Scotland
capitalising on these tailwinds.
The types of companies emerging include
public cloud integrators, cloud security specialists,
network transformation specialists (resell, install,
maintain), hybrid private and public cloud
providers.
This has presented investors M&A opportunities
to deploy capital in exciting growth businesses
with management teams that have been alive to
these trends. It has also driven corporate acquirers
to buy-up businesses that possess the know-how
and capability they require.
EY has created a team of experts to harness
these emerging needs and help the Scottish

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market accelerate emerging opportunities in tech.
The team, headed by John Divers who joined
EY in 2019 as an Associate Partner with 15 years’

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businesses, where here in Scotland we already
experience in the TMT (Technology, Media and
Telecommunications) sector, is pulling expertise
from across several specialist disciplines.
Joining John is Alan Campbell (Associate Partner
in Tax), Adam Broatch (Strategy & Transaction
Director), Rachel Chalmers (Senior Manager People

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forward to bringing our extensive knowledge
Advisory Services), Kay Greenshields (Innovation
Incentives Manager), and Kevin Swan (Strategy &
Transaction Manager). John said:
“We are constantly evolving our approach to
address our clients’ needs and indeed the market
needs. As a result, we’ve created this sector team
here in Scotland. The team brings together deep
expertise across a range of disciplines that are
relevant to the needs of growing technology
businesses – be it early stage fund raising,
accessing grants and innovation incentives,
designing management incentive plans, corporate
and employee mobility tax advice, corporate
For more information on how EY can support your business visit ey.com
finance and due diligence advice associated with
an exit or corporate M&A, and much more.”
Cloud adoption is just one of the broad macro
trends within the technology sphere that is driving
significant change right across the business
community, including in Scotland.
Cloud adoption has increased as businesses
become increasingly comfortable with the
technology and its security. Trends show business
use of cloud is moving from specific use-cases,
such as archiving and storage, to housing core
business applications with virtually all new
software adopted on a SaaS (Software-as-a-
Service) basis.
This adoption of cloud has several knock-on effects that
businesses need to consider:
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John Divers Oliver Henderson
BUSINESS PROFILE
These trends have been accelerated by the
pandemic with increased work from home
capabilities expected to be sustained post-
pandemic. For employers to facilitate remote
working there has been more widespread
adoption of SaaS applications, which are
predominantly hosted in cloud environments.
Banks and other large financial institutions
announcing cloud adoption strategies and
arrangements, including in Scotland, have played a
key role in building confidence in the cloud among
CTOs and business leaders.
Oliver Henderson, EY Associate Partner for
FinTech in Scotland: “UK banks and other Financial
Services businesses are increasingly implementing
cloud-led strategies in which to provide them with
greater agility and flexibility to meet the changing
needs of customers and the products they require.
This has been a key driver in the growth of FinTech
have a fast growing, and globally recognised,
FinTech cluster where EY actively supports both
FinTech businesses and financial institutions in
their strategic objectives.
“As the landscape continues to evolve, we look
and expertise in the FinTech and wider Financial
Services community beyond traditional markets.”
John continues: “There is sometimes a
perception that a firm like EY is focused on working
only with the largest businesses in the market - but
we see things differently. We work extensively with
young entrepreneurial businesses and believe it’s
important to forge partnerships at an early stage,
particularly with businesses in the TMT sector.
“We think the opportunity in Scotland is exciting
and here to stay, and we want to play our part in
helping TMT businesses and management teams
here in Scotland achieve their ambitions.”
THE BIG PROFILE: MARK WILSON, INTELLIGENT LAND INVESTMENTS GROUP

18 INSIDER May 2021 www.insider.co.uk


EVERYTHING WE ARE DOING
IS ABOUT HITTING OUR
CLIMATE NET ZERO TARGET
By KEN SYMON
T
HERE is something huge
coming out of Loch Ness and
it could be really significant.
It is not Nessie that I am
describing but a renewable energy
project that could go a long way
to solving the major problem of
renewable energy.
“It is exciting, very exciting,”
says Mark Wilson of the Intelligent
Land Investments Group, whose
brainchild the project is. “With
renewable energy, generally, the issue
is inconstant supply from offshore
and onshore wind. But here we are
talking about a project that just
doesn’t have those issues at all.”
The technology is pumped
hydro storage and the particular
project he is referring to is Red John,
ILI Group’s £500m development
project at Dores on Loch Ness. It is
a huge project and one of a handful
that together have the potential to
create 10,000 jobs and inject £3bn
into the Scottish economy.
Simply put, pumped hydro storage
aims to use Scotland’s greatest
natural asset – water – to fill the
intermittent power generation gap
and keep the lights on. It involves
pumping water up to a reservoir
when there is more energy on the
grid than is needed and store it until
the power is needed and the water is
released to drive the generators.
Red John is the most advanced
of ILI’s pump hydro storage
projects that also include a 600MW
plan at Loch Awe and a 520MW
site Loch Tay.
www.insider.co.uk
THE BIG PROFILE: MARK WILSON, INTELLIGENT LAND INVESTMENTS GROUP
Those projects are the result of
years of work for ILI Group.
Mark Wilson explains: “From 2009
to 2016, we were doing onshore
wind. While we were on that
journey it just became so clear that
energy storage had to become part
of the energy mix.”
This became evident, Wilson
says, from the UK Government
announcement in 2015 that
“unabated” coal-fired plants were
to close from 2025. He says it
became clear to him and his
colleagues “working on the front
You just have to have energy storage.
There’s no other way about it.
If you’re going to get to net zero,
you need it for when the sun’s not
shining, the wind’s not blowing
line” that there had to be another
solution beyond renewables because
of the intermittent nature of them as
a power source.
“You just have to have energy
storage. There’s no other way about
it. If you’re going to get to net zero,
you need it for when the sun’s not
shining, the wind’s not blowing.
So, we looked at all the different
technologies. We looked at green
hydrogen, which is good, but
it’s just not quite there yet.
We looked at pump storage,
which is what we’re doing. We
looked at lithium battery, which
we’re also doing. And we looked at
compressed air.
“But the reason we went with
pump storage is Scotland’s got the
topography for it, and you can do
it very big-scale, big-capacity: Red
John is 450 megawatts. That’s a big
project that will cost somewhere in
the region of £500m to build, but it
will offset millions of tonnes of CO2
emissions and it will allow significant
amounts of renewables onto the
system so we hit our net-zero targets.
“So, when the sun’s not shining
and the wind’s not blowing, it kicks
in and powers the grid. It also gives
the country – not just Scotland, the
whole of the UK – energy security.
So, where a lot of the time we’re
relying on interconnectors from
Europe with the pump storage
projects that are looking to get built
in the UK, that can give the UK, and
Scotland especially, more security of
supply, which is vital.”
Mark Wilson explains how it will
work. “When there’s excess wind
on the system, what the grid will
do is turn those turbines off – that’s
called curtailment and that costs the
consumer hundreds of millions of
pounds a year. Rather than doing
that, we buy that power at a cheap
price, or even for nothing, and we use
that power to pump the water from
Loch Ness up to an upper reservoir in
the mountain and it’s stored there.
“Then when there’s a need for it,
when the wind’s not blowing,
they’re able to hit a button, the
water goes down the tunnels
underground through gravity,
goes through the turbines and
May 2021 INSIDER 19
THE BIG PROFILE: MARK WILSON, INTELLIGENT LAND INVESTMENTS GROUP
the turbines turn and generate
electricity and that goes onto the
system. It’s that simple and it can be
repeated time and time again.”
He also argues that the approach
is a long-lasting one, providing
answers to Scotland’s energy needs
for many years to come. “Cruachan,
which is up near Oban, I think that’s
65 years old now, and was bought
recently from ScottishPower by
Drax. That will have another
life of maybe 50, 100 years on it.
These things are seriously historic
bits of infrastructure. Cruachan was
opened by the Queen when she was
in her thirties.”
Indeed, Cruachan has been
supplying significant amounts of
power since October 1965, when
the Queen officially opened what
was then the first reversible pumped
hydro storage system to be built
anywhere in the world on such a
scale. In addition to its supply of
power to the grid, Cruachan is also
significant in that it has a “black
start” capability – when there is a
total or partial power shutdown it
can restore power without relying
on an external power transmission
network, something that Red
John and the other projects ILI are Coming out of Covid, obviously you years. At the moment there are six
global infrastructure funds in our
developing would also have.
Mark Wilson says: “I’m very
need to stimulate the economy. And data room looking at Red John.”
But Wilson says there is so far a
proud of what we’re doing in ILI:
we’re bringing three of these
if you look back in history anyway missing piece in the puzzle. “Scottish
Government are very supportive of
projects to the market and we’re
hoping to have them all built by 2030.
it’s always been big infrastructure this, it’s on their radar, and that of the
UK Government. We’re doing a lot of
And that’s going to create
– we are going to create personally –
projects that have done that lobbying and we’re getting there and
we believe we’re not that far away,
about 5,000 new green jobs. but we need the UK Government to
These are big infrastructure concluded that pumped hydro make a policy change now. It’s not a
projects. It’s all construction, 70 per storage could save up to £690m per difficult policy change, all we need
cent of the capital cost is construction, year on energy costs by 2050. is for them to put a floor price for
so a huge amount of jobs. Wilson sums up the impact of long-duration storage.”
“What is exciting is that, coming the projects: “That four gigawatts He hopes the Government
out of Covid, obviously you need in total are enough to power will bring in a measure that is
to stimulate the economy. And if London, Glasgow and Liverpool, technology agnostic, that would
you look back in history anyway so it’s quite significant. There are cover both hydro pumped storage
it’s always been big infrastructure 40 gigawatts of pumped energy and other options, such as green
projects that have done that.” storage going to be needed on the hydrogen. “Back in the day there
In addition to the three projects system by 2050, so there’s still a long was always talk of a race on between
with a generation capacity that way to go. It’s not the answer but it is technologies, which technology
ILI are developing, SSE, Drax part of the solution.” would win the race. My belief is
and Buccleuch Estates are also But even that part of the that you just can’t have that these
working on pumped hydro storage solution as he describes it comes days with where we are with climate
projects, with SSE having received with significant capital costs change – you don’t have that luxury
revised consent from the Scottish – ILI’s projects come with a of choosing. It’s not a beauty contest
Government for its Coire Glas hydro price tag of somewhere between any more. You need to get things
plant near Loch Lochy in Lochaber £2bn and £2.5bn. built that are going to do the job.
in the Highlands. That plant would Wilson argues that, while the “If a policy came out next month
double the current amount of capital costs are significant, there for long-duration storage that just
pumped hydro store capacity in the is funding out there. “We’ve been gave a floor price … so it’s not going
UK. Research commissioned by approached by more than 18 global to cost the consumer money, it’s not
SSE from Imperial College London infrastructure funds in the past two a subsidy, it’s just a floor price to give
20 INSIDER May 2021 www.insider.co.uk

investors confidence that they can get
a minimum IRR [internal rate
of return on the investment]. Those
four gigawatts that are out there
– not just ours – those four gigawatts
will start construction and be
operational by 2030.
“They’re saying by 2025 consumers
are going to be paying £1bn a year
in constraints payments – that’s
switching off turbines. That’s just
ridiculous. This will mitigate against
that as soon as they’re operational.
We’re so close, all we need now is
for the UK Government to get this
on their dashboard and say ‘yeah
we realise this another important
cog in the wheel to get everything
moving, to get us to net zero’. The
positive is that climate change is very
much front and centre now of all
governments’ agendas.”
I suggest to him that with the
capital costs, the different technology
option and the length of time –
about a decade – the pump hydro
storage sites will take to develop
this is a big bet for a government to
make and perhaps governments are
not that good or quick at making
such decisions.
“It’s not a bet, that’s the thing,”
Wilson says. “All we’re saying to
the Government is put on a floor
price. These things stand on their
own two feet. There’s Cruachan up
in Oban, there’s Dinorwig down in
Wales – these things make money
with the market. All we need is a
floor price that will get the investors
www.insider.co.uk
THE BIG PROFILE: MARK WILSON, INTELLIGENT LAND INVESTMENTS GROUP
all on board. It’s the investors that’ll
take the risk.
“The government has done due
diligence on this. They know that
pump storage will not hit that floor
price – it will be way above that.
But that will get investors to take
that jump, it doesn’t need to be
government-funded.”
He cites a research report, Strategy
for Long-Term Energy Storage in the
UK conducted by Jacobs, the leading
engineering group, that was released
in August last year. “It showed that
pumped hydro storage is the cheapest
form of energy storage,” he says.
“If you’re looking at short-term
storage, lithium batteries are the way
to go – that’s up to four hours. If
you’re talking anything above eight to
12 hours of storage which is needed,
pump storage is three times cheaper
than lithium battery. It’s cheaper
than any other forms of long-term
storage. So that in itself is a reason
to do it, because it’s going to save the
consumer money.
He continues: “We’re doing two
bad things at the moment: we’re
stopping the turbines when you could
be turning them and making energy.
At the moment you’re switching them
off, you’re losing that energy. But the
That four gigawatts in total are
enough to power London, Glasgow
DQG/LYHUSRROVRLWłVTXLWHVLJQLğFDQW
consumer is also having to pay the
wind operator for switching them
off. So, it’s like a double whammy.
Whereas with pump storage on the
system, they can continue to run, you
can bring more renewables onto the
system, and you’re not wasting that
energy, and you’re not wasting the
consumer’s money.
“I’m doing this because I know
it makes sense. We started this in
2015 and we’ve looked at more than
130 sites with Acol, who are one of
the global top tech companies, and
we whittled them down to what we
know are the three best sites because
we need to get them built.
“This is just part of our journey.
We have a goal after this which is a
lot bigger than this, but it’s all about
stepping stones. Everything we’re
doing is about hitting our climate net
zero targets. I’m very proud to have
a letter on my wall from Sir David
Attenborough. They wrote to me
personally and said what we’re doing
is a really good thing; a huge stamp of
approval for us.”
Mark Wilson is convinced that,
if there is a UK Government move
on the floor price, the deal to build
the Red John pump hydro storage
scheme would become a reality.
ILI Group would partner with one
of the international infrastructure
funds they are talking to from
development right through to
operation. It would take about £500m
to build and would take a minimum
of six years. It would create 1,000
jobs, directly and indirectly and over
its life, Wilson says, Red John would
offset more than 14 million tonnes of
carbon emissions.
He stresses: “They stand on their
own feet, they don’t need to get
subsidised, like nuclear or most
renewables on the system. But,
because they are huge infrastructure
projects, investors are saying ‘yeah,
we like this, it makes money but,
because there is a six-year production
period, it’s high-risk’.
“We just need some certainty to be
able to invest that we’re not going to
lose all that money’.
“The Government putting in that
floor price takes away that barrier
to entry and then it’ll just happen.
And what’s beautiful about it is
that just as we’re coming out of
Covid we’re positioning ourselves –
not just us SSE, Drax and Buccleuch
Estates to bring thousands of jobs
to the Highlands of Scotland for the
next 10 years.” ■
May 2021 INSIDER 21

NOW IS THE TIME TO
TURN THE LOW-CARBON
DREAM INTO A REALITY
By GRAEME SMITH
T
HE UK oil and gas industry
has, over the past half century,
become expert at reinventing
itself through innovation.
However, it is currently facing a
challenge of unprecedented scale.
Global lockdowns and dramatically
reduced economic activity because
of Covid-19 have caused oil demand
to plummet.
The UK oil and gas industry
supports more than 250,000 jobs
when induced employment is taken
into account and it is feared that,
by the end of this year, as many as
30,000 of these could have been lost.
As well as the double whammy
of Covid-19 and an oil price slump,
the industry is facing growing
competition for investment from
more attractive prospects, not
least renewables.
That is why the recently approved
North Sea Transition Deal (NSTD),
a commitment of co-operation
between the sector and the UK
www.insider.co.uk
Government to support the industry
to a greener future, is so important.
The potential the NSTD offers
includes: unlocking up to £16bn in
investment over the next decade
in crucial low-carbon solutions;
supporting the creation of up to
It will unlock billions of pounds of
investment and see government and
industry work together to deliver a
homegrown energy transition
Deirdre Michie, OGUK (below)
40,000 new energy jobs; cutting UK
emissions by 60 million tonnes; and
kickstarting hydrogen in the UK.
“This is a transformative
partnership that will harness the
expertise of the UK offshore oil and
gas industry to urgently meet the
country’s climate ambitions of net
zero emissions by 2050,” says Deirdre
Michie, chief executive of OGUK.
REVIEW: OIL & GAS INDUSTRY
Offshore oil “It will unlock billions of pounds
platforms in the of investment and see government
Cromarty Firth and industry work together to
deliver a homegrown energy
transition, realising innovative
low-carbon solutions that can be
exported globally.
“The NSTD will safeguard
UK energy security, providing
affordable energy to millions of
households, secure tens of thousands
of jobs in industrial heartlands
across the country and support the
UK economy.”
Emeka Emembolu, senior
vice-president of BP North Sea,
says: “The NSTD is a strong
statement of support for our
industry as we navigate towards
decarbonisation of the UKCS
and net zero and fits in with BP’s
strategy of developing resilient
hydrocarbons in the North Sea.
“Since the beginning of oil and
gas production in the North Sea we
have been pushing the boundaries of
what is achievable.
“Central to this has been
May 2021 INSIDER 23
REVIEW: OIL & GAS INDUSTRY
developing the technology and
skills needed to operate safely and
efficiently, and our work towards net
zero will be no different.
“Our North Sea oil and gas
heritage will continue to play a major
part in the energy transition. With
decades of transferable technology,
experience and skills, this region can
be at the forefront of BP’s and the
industry’s transformation.”
The drive for net zero requires
the fast-tracking of the development
and deployment of low-carbon
energy sources.
Key to this could be the creation
of a world-leading Energy
Transition Zone (ETZ), as set out
by Opportunity North East and to
which £27m was committed in the
Budget. It will be a physical place for
research and development, test and
demonstration and manufacturing
activities in an exemplar net zero
environment. It will become the
focal point for the development of
the new energy transition industry
cluster in the region.
It will leverage Aberdeen Harbour
Board’s £350m investment to create a
unique offering of combined marine
and onshore support.
Industry and government must invest Steve Swindell, Xodus’s managing
director, says: “As the North Sea
The oil and gas sector is recognised and act now, or we risk losing our evolves, the focus on emissions is

opportunity to become a world-leading

as a technology pioneer and, with moving up the agenda as calls for
innovation now even more vital, oil more transparency around reporting

hub of energy transition activity

and gas technology body OGTC –
with more than £160m co-invested
with industry – has “Technology
Driving Transition” as its mission.
Stephen Sheal, OGTC’s external
relationship director, says: “From
offshore electrification and net zero
decommissioning to autonomous
robotics and renewable power
systems, we have screened more than
1,000 exciting new technologies,
completed or progressed 100 field
trials, and generated £15bn GVA
potential for the UK economy.
“We’re seeing significant growth
in cleantech, with 50 per cent
of the start-ups on our most
recent TechX accelerator pursuing
net-zero solutions.
“Our Closing the Gap: Technology
for a Net Zero North Sea report
in 2020, identified the critical
technologies needed to deliver
an integrated energy system
– such as affordable saltwater
electrolysis to produce green
hydrogen at scale and new materials
to enable efficient carbon capture
(CCUS) – and the huge economic
opportunity this creates.
“Addressing these gaps can create
24 INSIDER May 2021
and impacts grows. We have made
strategic investments and increased
Stephen Sheal, OGTC (below) our expertise in these areas as a
sustainable energy supply requires
up 232,000 jobs and deliver £125bn integrated sources in maximising
of value to the UK economy. economic recovery.
“But industry and government “Our combination of oil and
must invest and act now, otherwise gas and renewables capabilities is
we risk losing our opportunity to also allowing us to lead the way in
become a world-leading hub of helping North Sea clients identify
energy transition activity.” and define options for electrification
Energy consultancy Xodus is on both individual facilities and an
partnering with its clients to help area wide basis.”
them adapt to the changing North Xodus recently delivered a report
Sea landscape and has recently for the Scottish Government on the
invested in the growth of its low- scale of the opportunity to develop
carbon and emissions teams. green hydrogen from offshore
wind, which informed December’s
John Macdonald, Hydrogen Policy Statement and
OPITO Climate Change Plan Update. The
company has also been tasked by
Scottish Enterprise to help develop
and grow the offshore wind supply
chain across Scotland.
Energy Industry veteran Mark
Patterson has formed Aberdeen-
based Carbon Neutral Energy
(CNE) to make a major impact on
emissions by using a unique mobile
battery storage solution to store and
deliver green electric power.
www.insider.co.uk

He is aiming to raise at least
£300m and create 200 jobs
over the next five years to exploit
the opportunity.
CNE’s mobile and modular
units, with a 10-year life-cycle and
storage from 500 kilowatts to
several gigawatts, can relieve the
pressure on an already overtaxed
national grid, while reducing carbon
emissions and converting the UK’s
current containment payments into
power storage.
Patterson says: “Capacity has been
lacking for years leading to more than
£130m of taxpayers’ money being
spent last year on paying windfarms
to stop producing – this could be
diverted into storage and delivering
the power when we need it.
“Being able to deliver green
power to remote sites, for example,
is a game-changer for connectivity
in relation to electric vehicles. The
applications for sizeable electric
storage systems are immense and the
need is right now.”
Despite the changing sector
landscape, M & A activity has
already surpassed last year’s deal
value for the North Sea and is likely
to increase this year, according
to Norman Wisely of CMS, the
commercial law firm.
“While there are fewer lenders
operating in the market now, there
are also fewer buyers out there
and the mood is one of increasing
optimism. For aspiring oil and
gas-focused independents and
private equity entrants, there
will be likely opportunities to
secure attractive deals across a range
of assets, from exploration acreage
and field developments to mature
late-life assets.
“The volatile oil price and
Covid-19 has, however, created
significant changes to the time
involved in deal negotiations
especially affecting the period
between signing and completion.
Both buyers and sellers are also
continuing to find it hard to secure
valuations due in part to the recent
period of oil price volatility. It’s
hoped the price increases seen so far
in 2021 will stabilise the market and
help address this issue.”
According to Mike Beveridge,
UK co-head of Simmons Energy,
the energy investment bank,
one of the key themes is the
emergence of Middle East buyers
and investors, with substantial
capital and aggressive growth
www.insider.co.uk
REVIEW: OIL & GAS INDUSTRY
strategies, pursuing their own local
Mike Beveridge,
Simmons Energy
content obligations by acquiring
international technology and
expertise with a view to exploiting
this capability in their vast region.
“Relative to other sectors, oil
and gas has continued to perform
during the coronavirus crisis. With
the industry proving itself essential
during lockdown, many oilfield
services companies performed
quite strongly and are now seeing a
recovery in earnings.
“The significant existing
private-equity portfolio built up
Steve Swindell,
Xodus
during the last ‘super cycle’ will be
a key driver of M&A activity over
the next few years. Many of these
companies will now look to transact
so they can generate liquidity for
their investors within their planned
investment timeframe.
“The industry headwinds make
larger exits quite challenging, leading
some of the private businesses
of scale in the sector to consider
transformational paper deals.
“Fundamentally the oilfield
services sector needs a lot more
Emeka
consolidation to remove capacity,
Emembolu,
achieve genuine synergies and offer
BP
more compelling benefits to their
E&P customers.
“We are seeing substantial
deal-making activity driven by the
energy transition, particularly in
offshore wind. Other more nascent
sectors, like electrification of oil and
gas production, CCUS, hydrogen
and large-scale energy storage will
rapidly gain M&A momentum.
“Many have written off oilfield
services as a tainted ‘fossil fuels’
While there are fewer lenders industry. Oil and gas will remain
a key global industry for decades
operating in the market now, there are to come, whether the UK wants
to participate in this or not, and
also fewer buyers out there and the those that have conviction in this
continuing journey may well find
mood is one of increasing optimism themselves making some really
interesting financial returns, when
Norman Wisely, CMS (below)
others ‘are looking the other way.’”
The transition towards a more
Norman Wisely, integrated energy system presents
CMS an exciting opportunity for the UK
to maintain its position as a global
energy hub but a key element will be
the availability of a multi-skilled and
flexible workforce, according to John
McDonald, CEO of OPITO.
“We know from OPITO’s
Workforce Dynamics: Skills
Landscape reports that 80% of our
current offshore energy workforce
will still be active in the sector in
2025, with many of them positive
May 2021 INSIDER 25
REVIEW: OIL & GAS INDUSTRY
about the opportunity to retrain
for roles in the renewable energy Wind turbines are installed in the
industry. We need to help make that North Sea, off Whitley Bay
transferability of skills a reality, at all
levels, by creating the right platform
for green skills, jobs and careers.
“At OPITO, we embarked on
that journey last year with the
launch of a suite of global
qualifications and standards.
“In further recognition of the
collaboration required across all
parts of the energy sector, a year
ago we established the Energy Skills
Alliance (ESA). The group brings
together leaders from oil and gas,
renewables, nuclear and refining,
as well as representation from
regulators, trade unions and the UK
and Scottish governments.
The ESA will deliver key work
programmes over the coming
months, designed to provide a
clear forecast of energy skills
demand to 2050, to inform and
inspire the next generation, and to
lead the creation of an All-Energy
Apprenticeship scheme.”
Vic Fraser, regional officer for
Unite the Union, said he hoped the

Our subsea industry has the potential

ground-breaking Energy Services
Agreement (also known as ESA)
for engineering and maintenance
workers in the North Sea would
enable them to transition from
oil and gas to renewables offshore
when appropriate.
Fourteen major contractors
from the offshore energy sector
supply chain have confirmed they
will sign up to the ESA with the
three trade unions involved – Unite,
GMB and RMT – and, for the
first time in the sector, the
agreement is being supported by
the majority of operators.
“It will hopefully help put an end
to the boom-and-bust cycle offshore,
which means our members receive a
good pay increase when the price of
oil and gas is going through the roof
but are made redundant as soon as
price of oil and gas falls. Hopefully
we can get some stability,” he says.
“The operators are the paymasters
offshore and must treat the supply
chain fairly and consistently. The
ESA allows the supply chain to
tender at set labour costs, so
when a contract is won it should be
on the merits of the supplier not the
cost of the labour.
There is also greater optimism in
the UK subsea sector following a
recent survey of its supply chain that
revealed an improved outlook with
26 INSIDER May 2021
the blue economy.
“While oil and gas is still the
to become one of the largest and dominant market for the subsea
industry, activity in renewables
fastest-growing industries in the and other sectors of the blue
economy is increasing, particularly
country and the recent funding will offshore wind where our subsea
companies have now firmly
accelerate its transformation established a strong foothold.
“Both the UK and Scottish
Neil Gordon, Subsea UK (below) governments’ energy strategies
present exciting opportunities
fewer anticipated redundancies and for subsea. Working with
new geographical markets. government to ensure the subsea
Neil Gordon, chief executive supply chain is at the heart of the
of Subsea UK, says: “This is country’s energy strategy and
particularly encouraging given the measures are in place to ensure it
fragility of many firms before the can maximise the opportunity is a
pandemic hit. It also underlines the key priority for us.
resilience of the UK’s underwater “Of major interest to the
industry and the huge potential for underwater engineering industry
it in both the energy transition and and its supply chain are floating
offshore wind, hydrogen and
CCUS – all of which will, in some
form or other, rely on the subsea
expertise which has been honed in
North Sea oil and gas and now leads
the way around the world.”
“Our subsea industry has the
potential to become one of the
largest and fastest-growing
industries in the country and
the recent funding from both
governments for the creation of
a Global Underwater Hub will
accelerate its transformation. ■
www.insider.co.uk
 REVIEW: OIL & GAS ANALYSIS

T
HE ACQUISITION of
Chevron’s UK North
Sea business in 2019 has
propelled Ithaca Energy to
the top of the offshore exploration
ranking table which reveals a drop in
profits for six of the top 10.
Ithaca is owned by Israel’s Delek
Group and the $2bn (£1.6bn)
deal added 10 oil and gas fields to
Ithaca’s portfolio.
The results to the end of 2019 year
show Ithaca’s profits fell from £480.6m
to £448.1m but it recently reported it
had more than doubled its turnover
last year to $1bn (£718m).
Retaining second place in the
rankings is Repsol Sinopec Resources
UK Ltd, but turnover was down 17 per
cent from £1.2bn to £993.5m. Profits
dropped from £1.3bn to £176m.
The company is a joint venture
between Spanish-headquartered
Repsol and Sinopec of China. It is
based in Aberdeen, has interests in
48 fields on the UK Continental Shelf
and operates 38 of them.
Although turnover was down ITHACA RIDES CREST
OF A WAVE AMID
15 per cent to £857m and profits fell
from £185.6m to £86.6m, the Korean
National Oil Corporation subsidiary,
Dana Petroleum, moved up two
places to third.
Dana has interests in 22 producing
oil and gas fields with 11 operated
and 18 non-operated licences.
DIFFICULT WATERS from £3.4m to £12.7m and rose from
By GRAEME SMITH Above: Ithaca
Turnover was also down more Energy’s Stella
28th place to fifth.
than 17 per cent for fourth-placed platform in the Another high riser was Fugro
Apache North Sea Ltd, dropping Craig Shanaghey, Wood’s North Sea GB (North) Marine Ltd, which was
from £664.2 to £547.1m. Profits fell president of operations for Europe, successful in increasing turnover by
from £250.3m to £182.6m. Middle East and Africa, said: 16.8 per cent to £119.5m and profits
Other top-10 companies that “We are delighted to be ranked went up from £3.1m to £12.9m taking
experienced a drop in both turnover number one for offshore services it from 86th to just inside the top-10.
and profits were Total E & P North by Scottish Business Insider, which Shipping and energy service
Sea UK Ltd, with turnover down 2.9 is testament to our continued company North Star Holdco Ltd
per cent and profits down £311m to focus on delivering differentiated, achieved a negligible increase in
£137.1m, and DNO North Sea Plc, high-value solutions for our clients turnover but managed to turn a
with a 7.5 per cent drop in turnover in the offshore energy sector. £13.5m loss into a £1.9m profit taking
to £202m and a £1.9m loss compared “We continue to work with it to 22nd from 80th in the rankings.
to a £22.8m profit the previous year. our clients to ensure safe, reliable Ashtead Technology rose almost
Enquest Plc experienced a drop and sustainable delivery, all while 70 places from propping up the top
in turnover of almost 50 per seeking opportunities to extend 100 to 33rd. The company provides
cent (49.2 per cent) for year-end asset life, increase production technologically advanced subsea
December 2020, but it reduced its efficiency, and decarbonise solutions, tools and systems from
losses from £552.9m to £414.6m. operations on the industry’s critical its headquarters at Westhill in
Aberdeen-based John Wood Group transition to net-zero.” Aberdeenshire and offices around the
Ltd, known now just as Wood, has Technip UK Ltd, in second, globe. Its turnover rose 6.4 per cent
topped the service company increased turnover by 14.3 per cent to £21.5m and it turned a small loss
rankings. It is one of the world’s to £903.4m and turned a £98.3m into a £5.3m profit.
leading consulting and engineering loss into a £47.5m profit. National The biggest faller was offshore
companies operating across energy Oilwell Varco (NOV) provides services company Aker Solutions.
and the built environment and its oilfield equipment, technologies It dropped from third in the
results to December 2019 show and expertise globally to answer the rankings to 47th when turnover fell
a drop in turnover (4.9 per cent) challenges of its oil and gas clients. by 41.7 per cent to £293.1m and
to £7.5bn but a rise in profits from By increasing turnover by 15.4 per its losses increased from £3.3m to
£42.1m to £112.8m. cent to £346.7m, it increased profits £39.4m at December 2019. ■
www.insider.co.uk May 2021 INSIDER 27
REVIEW:OIL & GAS TABLES

Offshore service providers

RANK COMPANY LOCATION YEAR END CURRENT T/OVER £M PREVIOUS CURRENT PROFIT £M EMPLOYEES PROFIT PER EMP £ PARENT
21 20 ACTIVITY % CHANGE T/OVER £M PREVIOUS PROFIT £M % CHANGE % CHANGE NATIONALITY

1 (42) John Wood Group Plc Aberdeen Dec-19 7,500.89 7,886.42 112.77 50,942 2,214 Sco
Energy related services -4.89 42.13 909.95 -73.49
2 (2) Technip UK Ltd Aberdeen Dec-19 903.35 790.20 47.51 741 64,111 Fr
Offshore engineering; construction 14.32 -98.33 1.93 n/a
3 (1) Subsea 7 Aberdeen Dec-19 534.69 830.66 33.11 n/a n/a Lux
Offshore services -35.63 38.77 n/a n/a
4 (4) GEG (Holdings) Ltd Inverness Mar-19 300.07 289.20 15.73 1,882 8,358 Sco
Maintenance and construction 3.76 4.89 -43.40 468.18
5 (28) National Oilwell Varco UK Ltd Aberdeen Dec-19 346.75 300.52 12.74 1,628 7,826 USA
Offshore equipment manufacturer 15.38 3.41 4.63 257.03
6 (7) Bilfinger Salamis UK Ltd Aberdeen Dec-19 183.82 181.95 12.96 1,798 7,206 Ger
Multi-discipline offshore services 1.03 9.14 -2.18 44.90
7 (5) M-I Drilling Fluids UK Ltd Aberdeen Dec-19 145.73 147.61 14.46 351 41,197 USA
Oil rig drilling services -1.27 21.39 2.33 -33.94
8 (14) Balmoral Group Holdings Ltd Aberdeen Mar-20 137.16 108.04 10.31 687 15,007 Sco
Offshore/environmental equipment 26.95 -8.12 9.74 n/a
9 (6) CAN (Holdings) Ltd Aberdeen Dec-19 97.57 98.29 15.77 669 23,572 UK
Asset integrity service provider -0.73 21.51 1.36 -27.69
10 (86) Fugro GB (North) Marine Limited Aberdeen Dec-19 119.46 102.30 12.92 618 20,906 NL
Offshore surveying 16.78 3.07 1.98 313.24
11 (8) Archer (UK) Ltd Aberdeen Dec-19 115.15 114.59 9.86 640 15,408 Berm
Offshore personnel and equipment 0.49 12.53 -9.35 -13.18
12 (17) PD&MS Group (Aberdeen) Ltd Aberdeen Jun-20 95.06 87.94 7.31 154 47,468 Sco
Offshore services provider 8.10 6.62 35.09 -18.24
13 (81) Dril-Quip (Europe) Ltd Dyce Dec-19 88.11 68.96 9.71 323 30,062 USA
Oilfield equipment manufacture 27.78 10.92 -7.98 -3.34
14 (13) Petroleum Experts Ltd Edinburgh Sep-20 45.62 56.09 63.54 92 690,652 UK
Petroleum engineering software -18.67 36.80 9.52 57.67
15 (21) Hydrasun Ltd Aberdeen Mar-20 80.91 72.29 6.69 435 15,379 Sco
O&G fluid transfer; process controls 11.93 4.28 4.07 50.13
16 (9) JFD Ltd Aberdeen Dec-19 70.25 79.99 7.79 391 19,913 UK
Diving equipment -12.18 13.93 -4.40 -41.53
17 (40) Howco Group Plc Glasgow Apr-19 108.36 105.65 3.58 460 7,783 Jap
Metal & processing services 2.57 -2.49 2.45 n/a
18 (22) Briggs Commercial Ltd Burntisland Mar-19 75.70 58.28 4.49 757 5,935 Sco
Offshore engineering; fabrication 29.89 2.87 13.49 37.93
19 (15) Forsyths Ltd Moray Oct-19 52.94 46.77 7.10 402 17,659 Sco
Oil & gas and distillation equipment 13.18 4.68 4.15 45.65
20 (11) Sodexo Remote Sites Scotland Ltd Aberdeen Aug-19 86.69 81.94 2.90 1,145 2,534 Fr
Offshore/onshore facilities management 5.79 2.24 -2.72 33.16
21 (24) Grayloc Products Ltd Aberdeen Dec-19 25.25 24.73 13.49 36 374,750 USA
Offshore connectors 2.09 4.57 2.86 187.01
22 (80) North Star Holdco Limited Aberdeen Apr-19 70.25 70.19 1.89 8 235,625 Sco
Shipping; energy services 0.08 -13.45 0.00 n/a
23 (27) Odfjell Drilling (UK) Ltd Aberdeen Dec-19 41.68 44.81 4.59 326 14,089 Nor
Drilling contractors -6.98 1.21 -7.12 308.73
24 (71) Scientific Drilling Controls Ltd Aberdeen Dec-19 36.50 43.37 6.30 252 25,000 USA
Offshore directional surveys -15.84 -4.51 -27.17 n/a
25 (12) Trac International Ltd Aberdeen Mar-19 60.55 69.56 2.65 528 5,015 Sco
Engineering products and services -12.95 6.89 -12.00 -56.33
26 (33) Clariant Oil Services UK Ltd Aberdeen Dec-19 41.21 34.83 3.71 53 70,057 Swi
Chemicals/services for oil industry 18.30 2.53 -7.02 57.84
27 (36) Halliburton Manufacturing & Services Dyce Dec-19 582.14 513.15 -2.04 1,578 n/a USA
Offshore services and equipment 13.44 17.36 22.52 n/a
28 (67) Hunting Energy Services (UK) Ltd Portlethen Dec-19 48.48 35.90 1.87 128 14,609 UK
Oil and gas extraction 35.04 -4.19 8.47 n/a
29 (25) LFF (Scotland) Ltd Aberdeen Dec-19 50.85 31.17 0.93 40 23,150 UK
Offshore fittings and flanges 63.14 0.18 33.33 285.83
30 (26) Saltire Energy Ltd Aberdeen Jun-19 21.90 17.70 6.36 60 106,017 Sco
Drilling equipment supplier; oil tools 23.75 6.19 -7.69 11.33
31 (38) Axis Well Technology Ltd Bridge of Don Jan-20 24.99 20.78 3.90 77 50,649 Sco
Well technology consultancy 20.28 1.84 14.93 84.93
32 (39) Seatronics Ltd Bridge of Don Dec-19 24.30 22.30 4.06 74 54,865 UK
Marine survey equipment sale & rental 8.99 4.07 15.63 -13.79

28 INSIDER May 2021 www.insider.co.uk

 REVIEW:OIL & GAS TABLES

RANK COMPANY LOCATION YEAR END CURRENT T/OVER £M PREVIOUS CURRENT PROFIT £M EMPLOYEES PROFIT PER EMP £ PARENT
21 20 ACTIVITY % CHANGE T/OVER £M PREVIOUS PROFIT £M % CHANGE % CHANGE NATIONALITY

33 (100 Ashtead Technology Ltd Westhill Dec-19 21.45 20.17 5.34 73 73,151 Sco
Offshore equipment hire 6.35 -0.03 1.39 n/a
34 (65) Petrofac Scotland Aberdeen Dec-19 605.78 585.44 -3.96 2,420 n/a UK
Engineering and construction 3.47 -4.51 -4.91 n/a
35 (31) Peterson (UK) Ltd Aberdeen Dec-19 179.41 165.89 -2.39 752 n/a NL
Offshore logistics services 8.15 -4.62 7.74 n/a
36 (10) Babcock Mission Critical Services Aberdeen Mar-19 133.72 129.73 -2.87 432 n/a UK
Helicopter operator 3.08 4.38 -6.90 n/a
37 (32) Entier Ltd Aberdeen Sep-19 53.09 52.61 0.09 538 171 Sco
Offshore catering and support services 0.91 0.57 -3.24 -83.32
38 (19) Stena Drilling Ltd Aberdeen Dec-19 35.05 39.45 0.60 130 4,623 Swe
Drilling rig owners/managers -11.15 3.96 0.78 -84.94
39 (43) PLM Dollar Group Ltd Inverness Sep-19 20.18 16.11 3.38 89 38,022 Sco
Helicopter charter 25.25 2.94 9.88 4.76
40 (56) Stats (UK) Ltd Kintore Dec-19 39.06 43.43 0.18 239 766 Sco
Pipeline engineering -10.06 2.55 3.91 -93.09
41 (34) Gyrodata Ltd Bridge of Don Dec-19 16.88 16.21 3.70 100 37,000 USA
Wellbore survey technology 4.13 4.74 2.04 -23.50
42 (88) Tetra Technologies (UK) Ltd Aberdeen Dec-19 21.65 20.98 1.42 41 34,634 USA
Offshore fluid supply 3.22 0.08 -18.00 1961.55
43 (102 Nippon Gases Offshore Ltd Aberdeen Mar-20 18.32 16.85 3.25 45 72,222 USA
Supplier of gases to offshore industry 8.72 3.01 4.65 28.97
44 (57) KCA Deutag Aberdeen Dec-19 1,031.35 994.31 -83.50 8,249 n/a UK
Drilling and engineering contractor 3.73 -120.96 34.85 n/a
45 (59) Oceaneering International Services Ltd Aberdeen Dec-19 234.62 181.31 -26.63 2,413 n/a USA
Services/equipment to energy industry 29.40 -80.18 16.51 n/a
46 (61) Xodus Group Ltd Aberdeen Dec-19 36.12 32.86 -0.60 270 n/a NL
Offshore consultancy 9.92 0.06 26.76 n/a
47 (3) Aker Solutions Aberdeen Dec-19 293.06 503.02 -39.44 1,972 n/a Nor
Offshore services -41.74 -3.29 5.17 n/a
48 (72) Strategic Resources European Aberdeen Dec-19 23.88 18.60 0.21 10 21,000 Sco
Recruitment Agency 28.39 0.25 25.00 -32.80
49 (60) Sparrows Offshore Group Ltd Aberdeen Dec-19 208.03 188.82 -29.41 1,749 n/a Sco
Cranes and offshore services 10.17 -38.83 12.98 n/a
50 (73) Vallourec Oil & Gas UK Ltd Bellshill Dec-19 65.28 43.24 -3.64 175 n/a Fr
Offshore tubular goods 50.97 -8.73 -13.79 n/a

Offshore exploration companies

RANK COMPANY LOCATION YEAR END CURRENT T/OVER £M PREVIOUS CURRENT PROFIT £M EMPLOYEES PROFIT PER EMP £ PARENT
21 20 % CHANGE T/OVER £M PREVIOUS PROFIT £M % CHANGE % CHANGE NATIONALITY

1 (1) Ithaca Oil and Gas Ltd Aberdeen Dec-19 885.90 1,068.70 448.10 458 978,384 Isr
Oil and gas exploration -17.10 480.60 -23.79 22.35
2 (2) Repsol Sinopec Resources UK Limited Aberdeen Dec-19 993.45 1,196.46 176.63 899 196,469 Spa/Ch
Oil and gas exploration -16.97 1,322.22 5.64 -87.35
3 (5) Dana Petroleum Ltd Aberdeen Dec-19 857.94 1,014.61 86.63 247 350,729 KorRep
Oil and gas exploration -15.44 185.65 -3.52 -51.64
4 (4) Apache North Sea Ltd Aberdeen Dec-19 547.12 664.19 182.63 n/a n/a USA
Oil and gas exploration -17.63 260.25 n/a n/a
5 (6) TAQA Bratani Ltd Westhill Dec-19 637.12 707.18 81.12 553 146,682 UAE
Oil exploration -9.91 74.85 3.56 4.65
6 (3) Total E&P North Sea UK Ltd Aberdeen Dec-19 619.99 638.60 137.14 292 469,668 Den
Oil exploration -2.91 448.39 0.00 -69.41
7 (9) CNR International (UK) Ltd Aberdeen Dec-19 539.25 487.88 140.92 306 460,516 Can
North Sea oil and gas exploration 10.53 4.22 -6.13 3457.48
8 (7) Enquest Plc Aberdeen Dec-20 634.18 1,248.68 -414.64 885 n/a Sco
Oil and gas exploration -49.21 -552.96 -7.62 n/a
9 (10) DNO North Sea Plc Aberdeen Dec-19 202.04 218.52 -1.86 82 n/a Sco
Oil and gas exploration -7.54 22.79 -4.65 n/a
10 (12) Lansdowne Oil & Gas Plc Aberdeen Dec-19 0.00 0.00 -0.18 1 n/a Sco
Oil and gas exploration -0.29 0.00 n/a

www.insider.co.uk May 2021 INSIDER 29

A Life of 



 





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 SCOTTISH
ACCOUNTANCY
& FINANCIAL
TECHNOLOGY
AWARDS 2021
The Business Insider Scottish Accountancy & Financial Technology
Awards recognises the work undertaken by accountants and the rise of
Fintech businesses and specialisms that play a vital role in ensuring the
effectiveness of both private and public sector organisations.

Exciting sponsorship opportunities are available, ranging from

support partners through to title partner, to discuss in more
detail please contact:
Aileen Turnbull, Head of Sales
07825 899187 / aileen.turnbull@insider.co.uk
Debbie Caldwell, Account Manager
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scottishaccountancyawards.com #SAFAwards

IT’S TIME FOR THE
GOVERNMENT TO
CUT ITS TIES TO
OPENREACH AND
LOOK TO THE SKIES
B
ACK AT the turn of the 21st century, I
was the “expert advisor” to a committee
of the Scottish Parliament reviewing
broadband provision in Scotland. We
wrestled then with whether we should mandate a
10Mb minimum service.
I never dreamed that 20 years later the availability
of high-speed broadband would still be an issue.
Despite today’s need for Zoom business calls or
Netflix viewing, many people in internet “black
spots” are struggling to get 10Mb, leaving them
unable to undertake everyday online tasks.
This is despite BT’s infrastructure division,
Openreach – who have the monopoly of most of
the UK’s telecom network – receiving large slugs
of government funding over the past 20 years.
The most recent of these, £5bn, was pledged
last December, but it still seems to be beyond
Openreach to install a comprehensive fibre network
BT chose to broadcast expensive
sports rather than invest in extending
broadband to everyone
to every premise. A previous target, originally
100 per cent of homes by 2025, has now been
watered down to 83 per cent.
Instead, BT chose to buy and broadcast expensive
sports for wealthy metropolitan customers, rather
than invest in extending broadband to everyone.
When people talk about future provision of
broadband, there has been much talk of the benefits
of 5G cellular technology and mobile operators
also have their “begging bowl” out for government
funding to help them build out their networks.
Admittedly, 5G delivers potentially enormous
capacity to provide very high bandwidth and low
latency over cellular telephony, but along with that
capacity comes huge limitations.
To deliver high bandwidth, 5G technology uses
much higher radio frequencies and with those comes
reduced ability to transmit over distance, or through
any obstacles such as walls and structures. For 5G to
www.insider.co.uk
IN MY VIEW: IAN RITCHIE
work well, it will require a massive increase in
the number of base stations. Most modern office
blocks will also need to install 5G repeaters to
enable the signals to reach reasonable coverage
within their buildings.
It will take a long time for new 5G networks to
be constructed and inevitably will first concentrate
on the lower-frequency channels to support
self-driving vehicles on major trunk roads, one of
the key applications driving 5G technology. So
high-speed broadband over 5G to remote premises
will remain a distant dream for many years.
One solution to universal high-speed broadband
everywhere – which is not heavily publicised,
perhaps because it is not provided by an incumbent
provider looking for a government handout – is to
look “up”, and to the world’s two richest men.
A large constellation of connected satellites in low
earth orbit (LEO) is capable of massive amounts
of bandwidth delivered at low latency to anywhere
on the planet. A small antenna can lock on to the
nearest satellite as it passes over, and there will
always be another coming after it.
Elon Musk’s SpaceX has already launched 1,000
LEO satellites for his Starlink system and plans to
take this to 12,000. Meanwhile, Jeff Bezos aims to
spend $10bn to build his Kuiper competitor system
of 3,236 satellites.
And there are others, including OneWeb, now
45 per cent owned by the UK Government, which
also promises fast internet service anywhere.
But, given both Elon Musk and Jeff Bezos, arguably
the two most competitive men on the planet, who
both typically employ razor-thin margins to win
market share, it would be risky to assume that
anyone will make much money for a while – which
is great news for the customer.
Government should stop subsidising Openreach.
High-speed broadband, at a very competitive price,
will soon come down from the sky.
It’s finally time to “cut the cord”. ■
Ian Ritchie is a leading businessman who advises start-up
technology companies.
May 2021 INSIDER 33
International
Enterprising
Leading
Local
Strathclyde
The final word in business education

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recently named UK University of the Year in the
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We have a long and proud history of offering an MBA
education and we make sure our programme evolves
to encompass the latest business thinking. Strathclyde
Business School has innovation at its heart and our
students are encouraged to be innovative in their
thinking and approach to studies.
We never know what’s round the next corner but our
MBA gives you the tools to work with whatever life
throws at you and your business.
Our programme can be studied on a full time
or part time basis and we are offering a wide
range of scholarships for those starting the course
September 2021.

www.strath.ac.uk/business

PANDEMIC PUTS A FASTER
SPIN ON THE TECHNOLOGY
REVOLUTION
By PERRY GOURLEY
T
HE TECHNOLOGY
revolution that has seen
calculators and filing cabinets
all but disappear from
accountancy offices over the past 20
years also enabled firms in the sector
to quickly adapt to the challenges
posed by the pandemic.
Innovations such as electronic
filing, robotic process automation and
digital signing of documents mean
the technology to carry out many
day-to-day accounting tasks remotely
has existed for some time. However,
Andrew Walker, chief executive at
Johnston Carmichael, says Covid-19
“dramatically accelerated” take-up
across the profession.
“Change has been under way for
the past few years, with businesses
increasingly adopting the use of
technology following Making Tax
Digital, but adoption of cloud
accounting truly exploded during
lockdown,” he says.
As someone who began his career
www.insider.co.uk
REVIEW: ACCOUNTANCY
in the sector in the early days of hours very early in the morning
Microsoft Excel and well before before the kids get up, for example,
Zoom, Meston Reid & Co partner or late at night when they are going
Mark Brown says he was surprised to bed, but they find the pattern that
at how seamless a switch it was for works for them.”
staff to work remotely while still Graeme Allan, chief executive
maintaining client service levels. of Anderson Anderson & Brown
“The pandemic has certainly (AAB), says Covid-19 inevitably led
accelerated the push we were to a change in working environments
already seeing – particularly among and greater use of technology.
But, for those accountancy
Some clients have had to shut down businesses where change only started
in earnest when lockdown began
completely, but we’ve seen others in March, he adds, “it was almost
already too late”.
pivot and create new opportunities Given the hit to the economy and
the mothballing of firms in sectors
Stuart Clark, Russell & Russell (below) such as hospitality, it is perhaps
surprising that research carried
the younger staff – for more out during the first lockdown by
choice around working hours and Braemar Finance, a Dundonald-
location,” he says. based firm that works with
“Just from the timings of emails professional services firms, found
I receive from staff I can see they accountancy practices said they were
are working much more flexibly more likely to expand than contract
than a few years ago. Some of those in the 12 months ahead. Almost
with family commitments might three-quarters expected their staffing
have a couple of very productive to be unchanged despite the turmoil.
May 2021 INSIDER 35
REVIEW: ACCOUNTANCY
Stuart Clark, managing director of
Glasgow-based Russell & Russell,
says that clients needing help to deal
with the challenges posed by the
impact of Covid means his firm has
been “busier than ever”.
Clark says the many Government
funding schemes and updates
launched in response to the
pandemic, coupled with the need
for greater cashflow forecasting,
meant that, at times, “almost like
every day has been like Budget day”,
with clients needing a significant
amount of support.
“We have seen some clients that
have had to shut down completely,
but we’ve seen others pivot and
create new opportunities, which is
always the case with major events like
this,” he said.
Among the Big Four – which
account for the bulk of new recruits
into the sector – latest intake figures
have also provided optimism around
future demand levels.
PwC took on a record 108 student
joiners during its latest recruitment
drive, up from 93 in 2019, and
taking headcount across its
Edinburgh, Glasgow and Aberdeen
offices to 1,045.
The 97 graduates and apprentices
recruited by EY in its latest intake
north of the border was also up by
10 per cent on 2019. The Big Four
The pandemic has certainly digitisation of the sector, which has
been gathering pace in recent years.
have also been among the first in the
sector to signal plans for a different
accelerated the push we were already Areas such as AI and data analytics
are offering exciting opportunities
working model for the future.
KPMG, which added 56 graduates
seeing – for more choice around for accountancy firms to provide
new services to clients and add
and apprentices along with 30
experienced staff to its 1,000-plus
working hours and location more value.
According to Andrew Walker, of
Andrew Walker, Johnston Carmichael (below)
workforce at its Scottish offices Johnston Carmichael, that is also
including the recently opened making it a more interesting sector
Marischal Square base in Aberdeen, about 500 staff moving to permanent to work in.
is to introduce a more flexible way of home-working. “The increasing interface with
working that will see staff work part Smaller firms are also looking technology is having an impact on
of the week from home and part in at their office footprints. the people we are recruiting. These
the office or at client sites. It says the Dundee-headquartered EQ days we are increasingly looking
model will also enable the firm to recently closed its Cupar office, at IT or engineering graduates, for
have greater access to a “broader and although it stressed the move example, in addition to those who
diverse workforce”. would not impact jobs across its have accountancy degrees,” he says.
PwC is also rolling out a flexible 65-strong workforce. “I also think digitisation is making
working policy that will allow its Managing partner David Cameron the profession much more exciting
staff to split their time roughly half says the move came after a review for young people as the more routine
and half between their home and of operations over the past 12 tasks become automated, leaving
office or with clients. months concluded changes to more time for value added activities
Staff will also be able to have more working locations had not affected and more options to diversify into a
control over their working day, by client service. wider range of roles.”
starting or ending earlier, for example. “We feel that this decision will John Docherty, associate director
The shift in working patterns is allow more flexibility and is in the of accounting and finance at financial
also likely to see a wave of office best long-term interests of our clients services recruitment firm Core-
closures across the sector as firms and staff,” he says. Asset in Edinburgh, reports growing
consolidate their property portfolios. As well as changes to working competition for staff from outside the
Deloitte has already announced patterns, the pandemic is likely traditional accountancy sector.
the closure of four of its offices with to lead to an acceleration of the “Interest in start-ups from
36 INSIDER May 2021 www.insider.co.uk

candidates grew in 2020, especially
with a burgeoning fintech sector,”
he says. “Finance professionals
were attracted to the potential
growth from the ‘ground up’ and
the entrepreneurial culture, along
with a more expansive set of
responsibilities and greater senior
stakeholder exposure.”
Paul Buchan, principal consultant
for accounts and finance at recruiter
Eden Scott, believes the experience
of the pandemic will mean
employers will have to respond
to increased demand for flexible
working from candidates.
“Clients are already adapting
employment contracts for both
office-based and home-working
arrangements. Whilst there is a need
to have people back into offices
for team building, employers are
cognisant that many people will
expect some blended working model.
“One of the first questions I am
asked by candidates now is the
company’s attitude to home-working
in the future, which is a strong
indicator of where the market is likely
REVIEW: ACCOUNTANCY
Carol Flockhart,
Edinburgh’s Scotia Accounting
Chiene + Tait became part of larger city practice
Steedman & Company after a
merger deal.
Recent research by Edinburgh-
based cash flow fintech Float shows
there has been a significant shift
in the accountancy sector away
from sole traders and smaller firms
towards mid-to-large players, with a
net loss of 500 accounting businesses
between 2017-19.
Colin Hewitt, Float CEO and
co-founder, said: “Accounting firms
have demonstrated their immense
Graeme Allan, value during the Covid-19 pandemic,
AAB helping struggling businesses stay
afloat and informing them of their
financial options.
“Given that, there may be
concern the number of accounting
firms is in decline. However, it’s
important to note that a lack of
growth does not necessarily mean
the industry is in poor health, but
now has a smaller number of more
profitable accounting firms, following
years of growth at the lower end of
the market.”

Patterns in the workplace have

to be headed.” Although succession is also an
Keith Mason, director of Hays in issue for many smaller firms, Stuart

changed and it would be foolhardy for

Scotland, says a recent poll carried Clark of Russell & Russell, says
out by the firm shows that 81 per cent innovative structures can be found

organisations not to recognise this

do not think they will return to the
workplace the way it was pre-Covid.
“The accountancy landscape has
changed significantly and employers
need to be aware of that and plan
accordingly. Jobseekers are looking
for flexibility and a hybrid working
model,” he says. “Patterns in the
workplace have changed and it would
be foolhardy for organisations not to
recognise this and adapt their hiring
strategy accordingly.”
Mark Brown, of Meston Reid &
Co, says he has witnessed a shift in
what new recruits to the industry are
looking for in terms of careers and
work/life balance, a trend that is likely
to accelerate following the pandemic.
“There will be still be candidates
who see a partnership in the Big Four
as a very big goal, but for smaller
firms I think the full partnership
route is less appealing.
“I think the salaried partnership
model may be more attractive for
many where they are on a fixed salary
and possibly a bonus, but they are not
committed to the risk and rewards of
being an equity partner.”
Although there were no
significant consolidation moves
higher up the league table of
Scotland’s accountancy sector
www.insider.co.uk
and adapt their hiring strategy
Keith Mason, Hays
following a busy 2019, a number of
smaller firms were active.
Aberdeen-headquartered
Acumen Accountants took its
client base to approaching 2,000
after acquiring fellow north-east
firms Keltic Accounting and
Carnegie Knox. Goldwells, which
now has eight offices across north
and north-east Scotland, acquired
Moray Tax Specialists and Chris
Banks Bookkeeping.
Mark Brown,
Meston Reid & Co
that meet the needs of both the “old
guard” and the new generation.
Last year Clark took over as
managing director at the firm after
he and fellow directors Rosslyn
McMaster and Ian McMonagle
bought shares in the Glasgow-
based business. As it grows, more
ownership will transfer from the
founding Russell family.
“The firm’s legacy was very
important to the owners and they
didn’t want to become part of a large
group and lose that relationship with
their clients,” he said. “Between us,
we came up with a solution that met
everyone’s goals and ensured the
business was maintained.”
Clark believes there will be no
shortage of opportunities for other
practices to take a similar approach
in the years ahead.
“There are going to be lots of
baby boomers retiring in the next
few years who haven’t thought of
succession or for whom Covid is the
final nail in the coffin after the major
changes brought in by developments
such as real time information for
payroll, auto enrolment for pensions
and Making Tax Digital,” he says.
“There are also opportunities for
smaller boutique firms like ourselves
May 2021 INSIDER 37
REVIEW: ACCOUNTANCY
to win clients of some of the bigger
practices who have merged or
acquired lots of practices and are
no longer the practice that clients
originally joined. They don’t want to
be part of a behemoth and so they
will eventually leave.”
Graeme Allan, chief executive
of AAB, suspects that traditional
M&A activity will no longer be
the direction of travel for the
accountancy sector.
“The days of a larger practice
acquiring lots of smaller firms
with the same service delivery
capabilities and succession planning
issues are surely behind us. That
model certainly creates scale but not
necessarily value.
“Instead, we expect to see
dynamic private-equity-backed
investments focused on building
regional presence that can
deliver tech-enabled business
critical services, and we have
already seen some early activity
in this space. And I’m sure there
will be more.”
The shifts under way in the sector
have been highlighted by the growth
of Azets, now the largest SME
regional practice across Europe and
backed by private equity firm Hg.
Since it was established in 2016,
it has grown dramatically with
deals that included Scottish firms
Campbell Dallas and Scott
Moncrieff joining the fold. The
rebranding of both to Azets late last
year meant the disappearance of the
latter’s name, the oldest in Scotland’s
accountancy sector.
Chris Horne, Azets regional CEO
in Scotland and north England, said
the rebranding marked “a seismic
step forward” in the group’s plans to
disrupt the sector.
“The global scale and reach of
resources of Azets will allow us to
accelerate investment in the best
technology, develop new client
services and recruit the best talent.
The accountancy market is ripe for
disruption and change, and
we think that, under one brand,
we will be well-placed to drive that
change process.”
While technology is driving much
of the change in the sector, Mark
Brown of Meston Reid & Co, argues
that a wholesale shift to virtual
accounting would not be welcome for
advisors or clients.
“Meeting a client face to face and
having a chat about things is really
valuable and you often flush out
38 INSIDER May 2021
IN FOCUS: Audit services overhaul
A major overhaul of the market for audit services is in the pipeline something important that perhaps
after a string of high-profile corporate collapses in recent years.
wouldn’t happen over the phone
Long-awaited proposals recently announced by the UK
Government aim to reduce the dominance of the Big Four in
or by Zoom. I think if you were
the auditing of FTSE 350 companies, avoid business failures and to lose that face-to-face contact
attract more investment into the UK. entirely, you would probably
Andrew Walker, chief executive at Johnston Carmichael, end up with a diluted client
believes that, overall, the proposals will usher in “significant and relationship,” he warns.
welcome change for the audit industry”. Chiene & Tait’s Carol Flockhart
“There is no single solution to restoring the belief and trust in expects clients will be looking
audit quality but if firms commit to change and learning from for a blended approach to meetings
past mistakes, alongside developing a culture and practice of going forward, depending on
continuous improvement, the audit profession can go a long way their circumstances.
to restoring public confidence in its work.” “Many have indicated they
Walker says the proposals should be embraced as an
want to continue with online
opportunity to establish a more successful and sustainable future
communications as it allows them
for the audit profession.
“In doing so the reforms will not only result in ever more
more flexibility and closer contact
rewarding career opportunities for new generations of auditors with our teams,” she says.
but also, and critically, restore trust in the audit process,” he says. As the economy reopens and
The proposals include “managed shared audits”, where large practices adjust to the new
companies would be required to use a smaller firm to conduct a normal, commentators are
meaningful proportion of their annual audit. predicting significant changes to
Graeme Allan of AAB believes that presents an exciting the way professional services
opportunity for challenger firms to take on more of the listed companies operate.
company market. However, Graeme Allan, of AAB,
“We are already seeing a noticeable uptick in the volume of believes that, although the future
larger company audits – a clear shift from where we were three for the most successful firms will lie
years ago. We currently undertake audits for subsidiaries of listed
in acquiring and retaining the best
companies and work with the Big Four on these kinds of projects
people based on how they want to
so we know this model can work,” he says.
Carol Flockhart, managing partner at Chiene + Tait, cautions work, truly hybrid or flexible working
that there is a risk of an increased regulatory burden, which will still not be the norm for much of
could mean challengers are likely to struggle to compete for the the profession.
biggest audits due to the capital outlay required to build the “There is already a lot of chat
capability to take on engagements of that size. around getting back to offices – and
“This will undoubtedly push the need for a different set of audit probably being in them 9am-5pm
standards for smaller and less complex entities up the agenda,” – which begs the question ‘what has
predicts Flockhart. really changed?’,” he asks.
“How this will all play out will be partly determined by the “The impact of Covid-19 on the
approach taken by the Audit, Reporting and Governance sector should be that we now have
Authority in monitoring compliance with the rules and the the mindset that anything and
resources at its disposal to enforce these.”
everything is possible, but I’m not
sure that will be the case.” ■
www.insider.co.uk

KICK GOES FROM STRENGTH TO STRENGTH
THROUGH FURTHER ACQUISITION
Kick ICT Group was established in 2015 by
CEO Tom O’Hara, Group Sales Director Alan
Turnbull and Strategic Initiatives Director
David Chazan.
We provide business applications, network
infrastructure and communications solutions,
services and support to customers throughout
the UK. With strong leadership from Tom and the
team, we have gone from strength-to-strength
through what has been a challenging period for
the industry. With five acquisitions, the impact of
Brexit, and of course a global pandemic, it has been
an eventful as well as a highly productive period for
the business.
Growth through acquisition began in early 2015,
with Kick snapping up ERP and CRM software
reseller Talon Business Solutions. This was followed
by the acquisition of Roxxap in 2016, a specialist
Microsoft Dynamics reseller, which was then
integrated with Talon. In 2017 we made our
third acquisition, Vozero, a boutique Microsoft
Dynamics NAV consultancy, further strengthening
our position within the Microsoft Dynamics space
in Scotland. The fourth acquisition (April 2018)
came in the form of Castle Computer Services,
providing accounting and financial management
software, business intelligence solutions, cloud,
and managed IT services.
In April 2021 we acquired fellow Glasgow-based
IT company Clyde Solutions in a deal that resulted
in the creation of our new Communications
Find out how Kick can help your business at www.kickict.co.uk
Kick ICT Group, Solais House, 19 Phoenix Crescent, Strathclyde Business Park, Bellshill, ML4 3NJ
Tel: 01698 844 600
division. The acquisition of a specialist business
communications provider is a key strategic move
in our ongoing growth strategy and focus as a
leading IT services supplier to the UK SME market.
During the year to September 2020, we
maintained a solid financial performance. We
increased revenue by 10 per cent to £14.6m, with
pre-tax profits up 12% to £1.7m. This followed an
86% surge in revenues the previous year, when
BUSINESS PROFILE
profits more than doubled to £1.6m, breaking the
seven-figure barrier for the first time.
We continue to make sound progress in 2021,
the business continues to perform well, has good
cash reserves, a high-quality client base and
outstanding support from HSBC. This excellent
platform for growth has facilitated the acquisition
of Clyde Solutions and the business is well placed
to continue growing and building market share
both in Scotland and more widely across the UK.
We currently employ 120 staff and expect staff
numbers to increase to more than 150 by the end
of the year. To support our growth strategy, in
2019 we acquired and refurbished a 20,000 sq. ft
headquarters building in Strathclyde Business Park.
We are well positioned to help our customers on
their accelerated journey to the cloud. Demand
from organisations to communicate effectively
with their customers, employees and stakeholders
and to provide a robust and high performing
connectivity platform for their suite of business
applications has never been greater.
Our vision is to build a sustainable single-source
IT services business of scale, with a talented and
highly skilled team providing outstanding service
and adding value to our customers. As a business,
Kick - like many other organisations - will face
challenges ahead and we will need to continue to
evolve as we face them. But we have exceptional
skills, experience and the pedigree to deliver in this
sector. Our story continues to unfold.
REPORT: SCOTTISH FOOTBALL FINANCE
WINNERS AND LOSERS AS
FOOTBALL CLUBS TACKLE
ONSLAUGHT OF PANDEMIC
By KEN SYMON
W
HILE Rangers Football
Club may have
overtaken Celtic FC as
winners of the Scottish
Premiership, it is the Glasgow east
end club that retains the top spot on
the business side, according to the
Insider Football Finance Index.
However, the Ibrox club has moved
into second place in the table – up
from third last time, marking its rise
back to the top of Scottish football
from its previous decline.
Celtic came out on top in each of
the three sub-categories considered
in the Index, with clear leads in
the finance, management and
community areas of the index.
But the financial gap between
the clubs could narrow with
Rangers having signed a new kit
deal with Castore and Celtic’s poor
performances on the park liable
to hit kit sales.
Almost as notable as Rangers’
climb is that of St Mirren FC, with
the Paisley-based club climbing two
places to third from last year’s fifth
40 INSIDER May 2021
spot. The club has seen a marked
improvement over the year with
the club’s ownership and financial
stability now being ensured.
St Mirren’s performance on the
pitch has also markedly improved,
with the club just missing out on a
top-six spot to the Perth Saints by a
mere two-goal margin.
The improvement in Index
scores follows a marked increase in
Our fans have been amazing. They’ve
bought their tickets and supported the
club the way they’ve always done
the club’s financial stability, with a
significant stake having been taken
by Kibble, the major Paisley-based
social care charity.
That agreement, the first of its kind
between a football club and a major
charity, paved the way for the fans
group, the St Mirren Independent
Supporters Association (SmiSA) to
take over control with the ownership
Above: Hampden of 51 per cent of the club’s shares.
Park, home to the As part of the moves, Jim Gillespie,
national footbal chief executive of Kibble, became
team and the
vice-chairman of St Mirren at the end
latter stages of the
of March
Scottish Cup and
Scottish League Cup He says: “This season we have
invested differently in the squad.
The partnership with Kibble, SmiSA
and the board gave us the chance to
lay foundations.
“The takeover of fan ownership is
due to take place in July this year and
we’ve always had that in mind. But
what we’ve managed to do is support
the playing budget more this year,
even though we’ve had difficulties
with the pandemic.
“Our fans have been amazing.
Jim Gillespie, Kibble They’ve bought their season tickets
and supported the club the way
they’ve always done, which has given
us financial stability. The relationship
with Kibble augments that.”
Hibernian FC notched up the
fourth spot, sliding back from the
second place it achieved last year
despite the Edinburgh club’s financial
results announced in March revealing
an annual loss of £1.4m and the fact
that almost half its £5.4m financial
www.insider.co.uk
 REPORT: SCOTTISH FOOTBALL FINANCE
reserves having been eaten through sacrifices as well and everyone has
as a result of the pandemic. IN FOCUS: Ayr United played their part.”
The financial results come despite Heart of Midlothian FC were in
performances on the pitch under New MD harbours ambitious plans fifth spot in this year’s index, down
manager Jack Ross which, as I write, Despite the unprecedented financial challenges facing
from the fourth position achieved
looks set to seal third place in the Scotland’s football clubs, one businessman has recently become last year. But there were signs nearing
Premiership table for the Easter Road a new chairman and owner. David Smith, the managing the season’s end that the Tynecastle
club. A third-place league finish and director of Prestwick-based Ashleigh Building, took over in the club’s finances might be hit after a bad
European football next year would hot seat at Ayr United. He had been a member of the Scottish seven-day run at the end of March
be very significant for the club which, Championship club board for about a year and the plan had saw warnings some supporters might
Ross revealed, had deferred some of been that he would take over the owner and chairman role in pull their financial backing. This
the wage payments to its players to the longer term. followed an embarrassing Scottish
cope with cashflow issues. But Lachlan Cameron, the previous owner, was in the US and, Cup exit to Highland League side
The club’s owner Ron Gordon had with the difficulties presented by the Covid-19 pandemic, Smith Brora Rangers. But, despite the unrest
predicted revenues might be down by was already taking more of the key decisions and they decided and calls for Robbie Neilson’s second
about 50 per cent as a result of there to accelerate the passing of the torch between them. period as manager at the club to be
As might be expected, some people have suggested that
being no fans in stadia and wage cuts ended, as I write, the team is 13 points
Smith, a lifelong Ayr fan, was mad to take over at this time.
had been agreed with some players. He told The Times Scotland: “I have looked myself in the mirror
clear at the top of the Championship
Jack Ross was quoted as saying: “We a few times and thought ‘Am I doing the right thing?’. But I’m and close to winning the title and a
have had a lot of challenges this year absolutely positive it was right for the football club. return to the Premiership.
but we have been resilient. “In a situation like we have now, you need proper leadership A club that has parted company
“Things like wage deferrals. There in whatever business you are dealing with. Some people might with its coaching staff this season was
are a lot of people at this club who think I’m a bit mad, but it would have been dead easy to sit back Aberdeen FC, which came in at sixth
have still not had the money due to and let someone take the flak.” spot in the index, the same position
them. We have lost a lot of staff over The financial situation at the Somerset Park-based club is far as last time’s showing. The Pittodrie
the past year and things have been from plain sailing but some significant loans were written off as club revealed in January it would be
stripped right back. part of the handover from Lachlan Cameron. amongst the first of Scotland’s top
“So there has been a lot of pain The club has also received a government loan and Smith says clubs to claim emergency help
it is in decent shape to face the future. A development plan for
and a lot of things to deal with but Dave Cormack, the US-based
the stadium includes a new hub complete with offices a shop
we have still been in the top four all financier and investor who is the
and a social club and development of its north terrace.
season and got to the cup semi-finals One question on its future that is not decided is whether or
club’s major shareholder set out the
and if people could see us at work not to replace the current grass pitch with an artificial pitch. challenges for his and all the clubs in
every day over the past year, they Smith has said: “My heart says ‘don’t touch them’, but my head a video released in February. “Our
would see the challenges and how says ‘you will have to if you’re going to make this work’. We focus is on the financial sustainability
determined we have had to be to get won’t rush into anything, but it is something we will need to of the club because we’ve still got
to this stage.” look at eventually.” hardly any income and who knows
“We know that the fans stepped But he is determined to modernise the ground to improve when income will come back.”
up and still bought season tickets in the experience of fans on match days. David Smith has big He went on: “As stewards of this
numbers, even although they have ambitions for the club including seeing its accession to the club, this great club, that’s never gone
never made it inside the stadium. Scottish Premiership. bust in 117 years and it’s certainly not
So, we recognise they have made going to do so on my watch without
us pulling out all the stops to get
through this.”
Insider Football Finance Index 2020 Ranked seventh in the index,
Rank Team Insider Financial Corporate Stakeholder Motherwell FC reported profits of
FFI Score Discipline Score Governance Score Management Score
£346,950 in the year to 31 May 2020
1 Celtic 67 71 54 80 – a positive swing of £782,560 from
2 Rangers 58 54 45 90 its previous loss of £435,970 in the
3 St Mirren 56 49 56 69 2019 financial year.
4 Hibs 50 41 51 70 Despite the Covid restrictions, the
5 Hearts 49 38 40 88 Lanarkshire club’s turnover rose by
6 Aberdeen 48 51 39 56 nearly £400,000 to £4.95m, up from
7 Motherwell 44 41 41 58 £4.59m in the previous year. This was
8 St Johnstone 44 36 64 29 on the back of a third-place finish
9 Dundee 43 20 76 43 in the league after the decision was
10 Dunfermline 43 27 57 56 made to end the 2019/20 season after
11 Inverness 42 22 78 30 only 30 of the campaign’s planned 38
12 Partick Thistle 41 31 61 33 cub matches were played.
13 Queen of the South 41 26 63 41 The Fir Park cub continued to
14 Ross County 40 31 44 53 do good business in the transfer
15 Dundee United 36 17 59 45 market, with it posting a final figure
16 Hamilton 36 22 56 35 of £1.04m of player registration gains
17 Kilmarnock 34 34 32 35 – up by more than £260,000 on the
18 Falkirk 33 25 37 45 £781,000 achieved the previous year,
19 Livingston 31 25 40 29 Since then, results on the pitch
20 Greenock Morton 29 14 54 22 worsened and the club parted
www.insider.co.uk May 2021 INSIDER 41
REPORT: SCOTTISH FOOTBALL FINANCE
company with its then manager
Stephen Robinson. Now under Celtic are still ahead in the
a coaching team led by former Insider Scottish Football
Scotland international Graham Finance Index but Rangers
Alexander the club missed the top are closing the gap
six cut-off but, as I write, is one of the
clubs vying for a seventh place ‘best
of the rest finish’.
However, the full impact of the
pandemic has still to be felt as Steve
Brown, chairman of St Johnstone
Football Club, has warned.
The Perth club – which is in eighth
place in this year’s Football Finance
Index – in January reported a £20,000
loss for the year to May 2020, which
Brown said was “a decent result given
the fact there was little or no income
during the last fifth of the year”.
He warned shareholders then the
club was braced for a much bigger
impact this season as fans had still
not been allowed back into grounds.
Despite the warning, the club’s
board, which includes Aberdein
Considine partner Charlie Fraser
as its deputy chairman, is in a
better position than many of their
counterparts. The club has a £2.8m
“rainy day fund” and these reserves
will allow them to ease the Covid-19
pandemic economic hit.
At the time the results were
reported, Steve Brown paid tribute to
the club’s directors and his predecessor
Without the reserves prudently built positive financial trends with an
increase of turnover of almost £800,00
as chairman, his father Geoff Brown.
He said: “The board was required
up, the club would almost certainly – up 25 per cent on the previous
year – in the largely pre-Covid season
to make numerous difficult decisions
during the height of the pandemic.
KDYHEHHQLQGLUHğQDQFLDOVWUDLJKWV covered in those accounts.
Gate receipts were up 37 per cent,
Steve Brown, St Johnstone FC chairman
“Without the reserves that have although the club was hit by a loss of
been prudently built up over a an estimated £128,000 on the four
number of years, the club would IN FOCUS: Counting the cost of Covid cancelled home fixtures scheduled
almost certainly have been in dire at the end of that unfinished season.
financial straits moving into the next The club’s coffers were also helped by
financial year.” Old Firm net financial buffers being winners of the Championship,
Currently ranked just below St Celtic FC made a profit of £100,000 before tax, with the club’s Scottish football’s second top
Johnstone in the Scottish Premiership revenues decreasing by 15% to £70.2m, a total drop of £13.2m division, meaning their prize money
table, although seven places below from the previous year. saw a year on year rise of 18 per cent.
them in 15th place in the Insider The sale of Kieran Tierney to Arsenal was a major source of The club’s turnover was also
Index, is Dundee United FC. income for the club, with the receipt offsetting in part deals for impacted by the decision with the key
The annual results for the period Christopher Jullien, Ismaila Soro, Patryk Klimala, Greg Taylor decision to bring retail back in house,
and Boli Bolingoli.The club said that its financial year end
ended 30 June 2020 announced by the meaning that more than £500,000
cash net of bank borrowings was £18.2m – compared to
Tannadice club in April showed the of retail sales went directly into the
£28.6m the previous year. Since then, it increased its revolving
vying forces of the negative impact credit facility from £2m to £13m to provide a further financial Dundee United FC coffers.
of Covid and the positive one of the buffer if it was needed. Their story for that year also
continued financial investment made In the year to 30 June 2020, Rangers FC made losses of £15.3m highlights another key area for the
by majority shareholder Mark Ogren. – a figure up from £4.3m the previous year as the pandemic business side of clubs, namely cutting
Key positive developments at impacted Scottish football as all other areas of business. The club costs with the Tannadice club having
the club included their promotion said then it needed £23.2m in funds in by the end of this season, achieved reduced administration
to the Premiership and the further with Douglas Park, the chairman, and John Bennett, a director, expenses by more than £100,000 or
development of its youth academy, providing loans to cover the shortfall in the interim. six per cent on the year.
which has a growing reputation in Club revenues rose by 11 per cent to £59m, with a £20.7m Mark Ogren, the majority
the football world. contribution for reaching the Europa League last 16. Douglas shareholder and chairman of the
The profit and loss account for Park predicted the absence of fans for this season would cost club said at the time of the results:
Rangers more than £10m.
the period showed a loss of a hefty “Due to the Covid-19 pandemic,
£3.01m but the club pointed to 2020 will be remembered unlike any
42 INSIDER May 2021 www.insider.co.uk
 REPORT: SCOTTISH FOOTBALL FINANCE
board’s hopes of improved play on
Matches resume at the pitch as the investment in the
Rothwell Juniors Academy pays off and more younger
football club players come through to strengthen
as competitive
the team.
amateur matches
take place for the first
The other thing that has improved
time since restrictions sentiment is it clearly looks as if Mark
were eased Ogren plans to expand his sporting
assets in Scotland. It was announced
in March he had sold his share in
The Sioux Fall Canaries, the South
Dakota-based baseball team, and he
said at the time his commitment to the
ownership of the Tannadice club was
“unwavering”. It has since emerged he
is behind plans for a multi-million-
pound golf resort in St Andrews.
The American and his Spanish
business partner Hector Pous Rivero
have submitted plans to Fife Council
after buying the multi-million-pound
97.5-hectare estate at Feddinch
Mains last year. Their plans pick
up from previous ones by Open
champion Tom Weiskopf for an
18-hole golf course, club house, golf
Mark Ogren, Dundee
accommodation including up to 41
United
suites and a spa and restaurant.
United also have a base in the Fife
town, training at the University of St
Andrews Sports Centre. It is hoped
his commitment and that of other
businesspeople will be lasting and
will mean better times ahead for the
“beautiful game” in Scotland as it
emerges from the problems wrought
by the pandemic. ■

The Insider Football Finance Index is a

other year no matter where in the
world or what your business is. The
impact will continue to extend into
the economy and society for quite
some time but with the support of
our fans who continue to financially
support our strategy to take United
forward, we will come out of this a far
stronger club.”
The statement ties in with the
messages coming out of the club that
once the spectre of Covid-19 recedes
and fans can return to the stadium
then United’s financial position will
be stronger. This is allied with the
www.insider.co.uk
IN FOCUS: Ogren’s long-term goal
Mark Ogren, the owner of Dundee United, clearly looks here for
the long term with plans to expand his sporting assets in Scotland.
It was announced in March that he had sold his share in The Sioux
Fall Canaries, the South Dakota-based baseball team.
He said at the time that his commitment to the ownership of the
Tannadice club was “unwavering” and it has since emerged that he
is behind plans for a multi-million-pound golf resort in St Andrews.
The American and his Spanish business partner Hector Pous
Rivero have submitted plans to Fife Council after buying the
multi-million-pound 97.5-hectare estate at Feddinch Mains
last year. Their plans pick up from previous ones by Open
champion Tom Weiskopf for an 18-hole golf course, club house,
golf accommodation including up to 41 suites and a spa and
restaurant. United also have a base in the historic Fife town,
training as they do at the University of St Andrews Sports Centre.
complex decision analysis designed to
rank the top Scottish football clubs. The
Index was originally designed in 2017
based on interviews with accountants,
lawyers and financial specialists as well
as journal articles to produce 11 main
criteria, categorised into three primary
sub-sections: financial discipline,
corporate governance and stakeholder
engagement.
The Index research uses proxy
measures for the area of study to give
high quality secondary where primary
data is not available. In previous years
we have used fan attendance at grounds
in the stakeholder engagement category.
Because of the pandemic and with no
current fan attendance this has not
been possible and so we have used last
season’s figures. The research for the
Insider Football Finance Index 2021
was carried out by Steven Wilson. In the
interests of full disclosure it should be
stated the author is a lifelong supporter
of Motherwell Football Club and served
for a short time on the board of the Well
Society, the club’s fan ownership group.
May 2021 INSIDER 43
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"





FORGING A BIGGER,
BRIGHTER AND
STRONGER FUTURE
By KEN SYMON
T
HE CHALLENGE for
Scotland’s manufacturers over
the past few months, as with
many businesses, has been
not only to survive but to emerge
from the shadow of the pandemic in
a shape and with processes that are
better fitted to the future.
John Reid, chief executive officer
of the National Manufacturing
Institute Scotland Group, says:
“The past year has been one of the
most challenging ever for Scottish
manufacturers and we are here to
help the community refocus, embrace
innovation and seize the opportunities
that can emerge from adversity.
“As we move forward towards
a post-pandemic world, many
companies have already
rapidly accelerated their digital
transformation and diversified to
meet new demands, and we are all
presented with a chance to shape
our own future; one that is bigger,
stronger and more sustainable.”
The future of manufacturing in Scotland
www.insider.co.uk
When the plans for the Institute
were set out about 18 months ago no-
one could have predicted it would be
operating in these still early days in
such an unprecedented environment
with such a unique set of challenges
for the sector, with not only the
impact of coronavirus to contend
with but also with those of Brexit and
Manufacturing can either return to
what it once was, or it could become
demonstrably better in many ways
Paul Winstanley, CENSIS (below)
the sharply increasing demands to
combat climate change.
In this environment, The National
Manufacturing Institute Scotland
(NMIS) has been working with
manufacturers of all sizes across
various industries to help them
identify and seize opportunities. For
some, this has been about reforming
their business completely through
REVIEW: MANUFACTURING
in association with
Above: an artist’s embracing innovation but, for others,
impression of it has been about solving day-to-day
the new HQ for production challenges that have
the National affected their bottom line.
Manufacturing
As it has done this work,
Institute Scotland
Group near Glasgow
construction has also been under way
Airport on the Institute’s new headquarters
at the heart of the Advanced
Manufacturing Innovation District in
Renfrewshire, near Glasgow Airport.
At about 1.5 times the size of
Hampden football pitch, the NMIS
HQ will include a skills academy,
a fully digitised factory of the
future and a collaboration hub. The
new facility will aim to support
manufacturing and engineering
businesses of all sizes and from
all sectors across the country, and
internationally, to innovate and grow
their businesses.
It is part of moves to create a sector
cluster in the area, adding to the
existing University of Strathclyde’s
Advanced Forming Research Centre
(AFRC), which is seeing its own
significant development with the
launch of its £20m FutureForge
nmis.scot
May 2021 INSIDER 45
REVIEW: MANUFACTURING
to take place this summer. As
manufacturing becomes increasingly
data driven, the FutureForge will aim
to offer the world’s most advanced
hot forging platform.
The FutureForge is financed by
a group of funders that includes
the UK Aerospace Research and
Technology Programme – delivered
by the Department for Business
and Energy and Industrial Strategy,
Innovate UK and the Aerospace
Technology Institute – economic
development agency Scottish
Enterprise and the High Value
Manufacturing Catapult.
Together, they mean that Scotland
has assembled a significant amount of
firepower to propel its manufacturing
and engineering sectors into
the future as the domestic – and
international – economy opens back
up. Recent research suggests output
in manufacturing had begun to climb
and gained further momentum as the
first quarter of the year ended, with We have seen businesses within our collaborative network, developing
and delivering the right skills,
March seeing the fastest output in
growth since late 2020 with increased portfolio quickly adapt by taking steps and examining the resilience and
complexity of supply chains.
new business from both domestic
and overseas markets. to ensure all employees are able to “Inevitably, part of this process
will be informed by what we can
Mike Thornton, partner and
head of manufacturing at RSM,
socially distance and feel safe at work learn from the past year. Among the
biggest lessons has been around the
the accountancy firm, said: Paddy Graham, BGF (below) on-shoring of supply chains.
“Despite uncertainty and supply “Early in the pandemic, personal
chain pressures, the latest CIPS Paul Winstanley, CEO of CENSIS, Above: Window protective equipment (PPE) supply
Manufacturing PMI shows Scotland’s innovation centre for Supply Company, chains had to form very quickly
significant improvement increasing sensing, imaging systems and one of the to deal with the sudden influx of
to a decade-high of 58.9 from 55.1. Internet of Things (IoT) technologies, manufacturing demand and limited transportation,
businesses receiving
“This optimism is understandable says the key question is: what does which saw strong ministerial
investment from BGF
when you consider the latest the industry recover to? engagement bringing companies
announcements from the UK He sets down this challenge for the together. This is an experience we can
Budget, including Freeports, the 130 sector: “Manufacturing can either draw on for the future and we expect
per cent ‘super-deduction’ for capital return to what it once was, or it could to see more movement in on-shoring,
spending and the planned review of become demonstrably better in particularly on the back of Brexit.
research and development (R&D) many ways. As difficult as the past 12 “We can also learn how to form
tax relief, which could deliver key tax months or so have been, we now have new clusters, growing new supply
benefits for manufacturers looking to an opportunity for large-scale change and value chains from these. Scotland
invest in the UK. and it has uncovered what is possible has the expertise and knowhow to do
“In addition, the Government with digital transformation, remote this, which has been demonstrated
recently announced the creation of working and greater flexibility.” in recent years by the sensing and
four new trade and investment hubs, CENSIS has been involved in photonics industries.
which aim to boost exports and the development of the Scottish “They also provide a natural
deliver better access to global markets Manufacturing Recovery Plan. He base that can be extended into
for Scotland, Wales, Northern Ireland says: “This has largely involved other hi-tech manufacturing areas,
and the north of England. As part of looking at how the manufacturing as well as a blueprint for positive
the Government levelling-up agenda, sector can adapt and transform development elsewhere.”
these hubs could offer a real trade through the adoption of digital But Winstanley says there are
boost for manufacturing heartlands technologies, while addressing key issues of strategy around this.
across the UK.” environmental challenges too. “The question is: where should
But, as it recovers from the From that, the key themes for the these clusters be encouraged to
difficulties faced over the last year, industry will be around building a form? We are already beginning

The future of manufacturing in Scotland nmis.scot

46 INSIDER May 2021 www.insider.co.uk

to see them emerge in sectors such as
smart transport and hydrogen – Scotland
has a unique opportunity with the latter
to be a world leader in the production,
distribution, and usage of hydrogen and
related technologies.”
Another challenge he highlights is the
make-up of the Scottish business base
with its predominance of SMEs. “We need
to make it clear how the principles of
Industry 4.0 and digital technologies can
be applied to them. Collaboration between
businesses, academic institutions and other
stakeholders will be crucial in that respect,
helping to demonstrate how Industry 4.0
might be applied to multiple SMEs or even
throughout an entire supply chain.
“This is another area in which Scotland
has a unique opportunity to be a global
leader, pioneering the application of new
digital technologies to entire ecosystems
rather than just one large business,” says
Winstanley.
Paddy Graham, head of the Central
Scotland and Northern Ireland team of the
UK’s most active investor BGF,
says the sector has learned the benefits of
flexibility over the past Covid-burdened
year. BGF has invested in Scottish-based
manufacturing businesses including
Window Supply Company, Walker
Precision, Moulded Foams and M2 Lasers.
He says: “There has been an
increased awareness and drive amongst
manufacturing businesses to be as flexible
as possible to accommodate the different
needs of office-based and plant-based staff
with Covid-safe environments being a
priority focus.
“We have seen businesses within
our portfolio quickly adapt by taking
steps such as altering shift patterns and,
in some cases, due to the nature of their
operations, additional facilities have
been opened up to further ensure all
employees are able to socially distance and
feel safe at work.”
There have also been other changes, he
says. “A lot of companies are re-assessing
their supplier chain as the pandemic has
shown how this can be seriously impacted
and have a real knock-on effect, especially
to those manufacturing companies that
rely on possibly one or two supply chain
companies to provide key materials
necessary in their production.
“Manufacturing companies that have
managed to come out the other side of the
various lockdown restrictions relatively
unscathed tend to be the ones that had
sufficient stock levels that allowed them to
continue to trade throughout.
“While there is a fine balance, shortages
of inventory and raw materials can have
a significant impact on manufacturing
schedules and budgets, and therefore
www.insider.co.uk
REVIEW: MANUFACTURING
lead to increased labour costs and
production bottlenecks.”
Many manufacturing companies that
have weathered the pandemic are now
facing the challenge of rebuilding their
balance sheets, an area where investment
in working capital will be key to growth.
Graham adds: “Specific improvements
in capital allowances, such as the recently
announced super deduction, should
encourage manufacturing businesses
to invest and will ultimately improve
productivity and competitiveness.
“However, there is concern that some
may not have the flexibility to make
capital investments, and it will be
important to continually assess the
extent to which smaller manufacturing
companies are utilising these new tax
incentives to allow them to invest in the
tools they need to grow.”
Complicating this picture is the changed
funding regime for companies as the
realities of Brexit become ever more
apparent. Joe Matusiak, grants manager at
innovation funding specialists ABGI UK,
While we are seeing
an increasing appetite
for innovation and R&D
funding within Scotland’s
manufacturing sector, Brexit
has realigned grant funding
arrangements Joe Matusiak, AGBI
says: “While we are seeing an increasing
appetite for innovation and R&D funding
within Scotland’s manufacturing sector,
Brexit has realigned grant funding
arrangements. Scottish firms and their
UK counterparts will have continued
access to Horizon Europe funding, but
they will not be eligible for aspects of the
European Innovation Council Fund, nor
will they have access to European Regional
Development Fund grants.
“Scottish manufacturers that require
innovation funding should focus on
existing channels, including Innovate
UK, while those looking to contribute to
improving the environment and achieving
net-zero emissions, will be able to access
support via the Scottish Enterprise Green
Fund. Manufacturing SMEs operating
within Scotland’s aerospace sector can
also apply for up to £300,000 in support
funding to increase their global business
prospects through the National Aerospace
Technology Exploitation Programme.” ■
COMMENT
Stewart McKinlay
Skills Director at the National
Manufacturing Institute
Scotland’s Manufacturing
Skills Academy
W: www.nmis.scot
Shining a light on next
generation will deliver a
brighter future
Over the past year, we have seen employment
opportunities, for people of all ages,
significantly decrease across the UK. For
graduates, this has been no different as one
in eight found themselves unemployed in
the third quarter of 2020 – almost double the
average rate for this group over the past three
years – according to figures from the Office for
National Statistics (ONS).
Looking ahead, it is vital that we do what
we can to ensure that those who have lost
out are given all the support they need. That
is why, with significant investment from the
Scottish Government’s £25 million National
Transition Training Fund (NTTF), the National
Manufacturing Institute Scotland (NMIS) is
offering 30 STEM graduates across Scotland the
opportunity to work directly with its engineers
and researchers. The scheme will provide
participants with on-the-job training and equip
them with in-demand skills relevant to digital
and advanced manufacturing and engineering.
As part of this, we are collaborating with small
and medium sized manufacturing businesses
across Scotland, in a bid to offer graduates
invaluable experience to learn from and work
with potential employers.
We also want to ensure that we are
supporting the next generation of engineers
locally and that is why we have partnered with
Scottish charity, Kibble, in a bid to encourage
care experiences young people the opportunity
to pursue a career in STEM. Through the
partnership we are highlighting the alternative
pathways into employment, showing that there
really is no wrong path.
As an industry rooted in innovation, it is
essential that our young people are offered the
opportunity to tackle real-world issues. Through
our Manufacturing Skills Academy, our aim is to
transform the workforce of today and tomorrow,
creating opportunities for people to have
flourishing careers, while investing in talent to
better the productivity and competitiveness of
our manufacturing landscape in Scotland.
May 2021 INSIDER 47
BUSINESS PROFILE
ETHICAL FINANCE  A FOCUS FOR 2021 AND
BEYOND
Once niche, the ethics of borrowers and
their debt-funded projects has fast become
a dominant theme of the UK debt market in
2021. The focus coincides with an increasing
awareness of and market support for the UK
and Scottish governments’ commitment to
achieving net zero.
What is ethical finance?
The term ethical finance, or sustainable finance, is
used to describe finance that takes into account
environmental, social and governance (ESG)
factors affecting a borrower and/or its assets.
Environmental factors are those affecting the
natural world and include climate change, energy
efficiency and treatment of waste.
Social factors concern local and global
communities and include working conditions,
health and safety and diversity and inclusion.
Governance factors concern the internal
workings and decision making processes of the
borrower, including board independence and
transparency, as well as its relationships with its
stakeholders, including shareholder rights, anti-
bribery and corruption and political lobbying.
Ethical finance in 2021
Ethical finance is not a new concept, but has long
existed and been offered in various forms via
entities such as credit unions and lending circles.
Ethical principles are also already applied in some
specialist financings, for example by certain
providers of international project finance to
determine, assess and manage environmental and
social risk arising from the project(s) (often via the
“Equator Principles”).
However, the global financial crisis underscored
the primacy of responsible lending and in the
dozen or so years since, political and societal will to
Stuart McMillan is a Partner and Amy McVey a Director in the Edinburgh-based Banking and
Finance team at independent UK law firm Burges Salmon.
Contact: stuart.mcmillan@burges-salmon.com +44 (0) 7968 558 978,
amy.mcvey@burges-salmon.com +44 (0) 7866 890 232 or visit burges-salmon.com
tackle the threat of climate change has increased,
with the signing of the Paris Agreement at COP21
in December 2015 evidencing a firm commitment
to action. Most recently, the coronavirus pandemic
has reemphasised community, society and
the importance of universal access to essential
services.
Three key categories of
ethical finance :
1. Green finance – where debt is made
available for a specific ‘green’ project with clear
environmental benefits, such as renewable energy
production.
“Green loans” are the product generally associated
with modern ethical finance. Their use and
popularity are however constrained by the
availability of investments, and so we are seeing
volumes remain steady.
2. Social finance – where debt is made available
for a specific ‘social’ project which aims to address
or mitigate a specific social issue or seeks to
achieve positive social outcomes for target
beneficiaries, such as programs designed to
alleviate unemployment or improve access to
essential services.
More familiar perhaps in and to funders operating
in international markets, we expect to see more
UK projects being funded via social financing
products in the short to medium term partly
to address issues identified as a result of the
coronavirus pandemic.
3. Sustainability-linked finance – where debt
is not made available for any particular project,
but the ultimate use of funds and/or the borrower
entity are assessed and measured against an
agreed, documented list of ESG metrics, with
positive, metric-compliant behaviours rewarded,
usually with a reduction in the cost of the finance.
We are seeing a significant increase in new
financings incorporating ESG metrics, including
from the UK clearing banks, and expect these
provisions to soon become ubiquitous.
Sustainability-linked finance is clearly aligned
with the commitments of the UK government and
Scottish government to achieve net zero by 2050
and 2045, respectively. This will require wide and
early engagement across all sectors, including the
financial sector, and positive behavioural changes
of the kinds encouraged by sustainability-linked
financial products.
It also addresses key stakeholder considerations,
with investors using ESG factors to assess the asset
base and behaviours of finance providers they are
considering investing in.
Finally, the flexibility afforded by the structure,
which as non-prescriptive is easily adaptable to
different borrowers, sectors and assets, is a key
strength. Once suitable and realistic metrics are
agreed, these and the pricing or other implications
are able to be incorporated in existing debt
products rather than being funnelled via new
specialist sustainability-linked products.
Beyond 2021
Political focus on sustainability, with its strong
climate change pillar, is acute in the lead up to
COP26, now scheduled to take place in Glasgow
this November. Funders are therefore under
pressure to maintain sustainability standards
within the UK in order to both meet political
expectations and to remain attractive to
potential investors. For both reasons, the focus
on sustainability-linked finance will undoubtedly
continue, with ESG metrics soon seen as
fundamental provisions of any debt document.

in association with
THE BUSINESS WISHLIST IS
NOW BECOMING A REALITY
By KEN SYMON
E
THICAL investment and a
more values-driven approach
to business generally have
become more and more
centre stage in recent years. The
effects of the pandemic and the
drive to net zero as climate change
climbs higher and higher up
business boards’ agendas are only
likely to increase that.
Arlene Ewing, an investment
manager at wealth manager Brewin
Dolphin in Glasgow, says the first
“socially responsible” investment
fund was introduced in the early-
1970s to meet the needs of investors
that were becoming more ethically
conscious following a period of
unrest and large-scale activism.
“Fifty years on and world events
still bring the ethical issues at the
forefront of society into how people
invest their hard-earned cash,”
People say it’s not what you know, it’s who you know.
We believe it’s both.
www.insider.co.uk
she says. “Unique, hard-hitting
documentaries and social media
has meant that consumers now
have more access to information
about how companies are operating
and can make informed choices
We are now seeing a new generation
of millennial investors that are more
conscious, considered and aware
Arlene Ewing, Brewin Dolphin
about where to spend their money.
Ethical consumerism has soared
over the past few years and society
has a heightened awareness of
moral issues that can influence
their spending choices. In turn, we
are now seeing a new generation of
millennial investors that are more
conscious, considered and generally
aware of the companies and funds
www.grayling.com
REPORT: ETHICAL FINANCE
Above: Jo Haliday they are choosing to invest in, and
and Elizabeth Fairlie so grows the demand for ethical and
of Talking Medicines socially responsible funds.”
A survey for Wealthify, an
Aviva online investment
subsidiary, underlined this point.
It found that 82 per cent of Scots
believe it is important to support
ethical or sustainable brands in
their daily lives.
But the survey also suggested a
disconnect between that desire and
practice – almost half of the Scots
surveyed viewed ethical products
as too expensive to shop for in their
daily lives.
Ironically, the survey also found
that, when asked if they would be
willing to pay more for a product
that is ethical or sustainable, 62 per
cent of Scots said they would be.
Mike Pearce-Burke, the
chief operating officer of
Wealthify says: “We know that
conscious consumerism is on the
May 2021 INSIDER 49
REPORT: ETHICAL FINANCE
rise. Coronavirus has encouraged
many of us to shop more locally
and ethically than in pre-pandemic
times. We also see this reflected
in the investment decisions being
made by an increasing number of
our customers.”
“The significant increase we
have seen in customers opting for
our ethical investment plans over
the past year has meant that their
uptake is now outstripping our
standard investment plans by
almost two to one.
“What’s more, investment
returns on our ethical plans last
year actually outperformed our
original investments, demonstrating
the added value of consuming,
purchasing or investing ethically.”
This is a key factor in the rise
of ethical investments: improving
returns on the investment. Ewing
at Brewin Dolphin says: “It is often
thought that ethical funds receive
lower returns than their not-so-
ethical counterparts. But, as more
people align their investment
choices with their own values, these
funds are generally competing and For me, the direction of travel is developing ESG regulations and
voluntary standards on the one
on a positive trajectory of growth.
“ESG (Environmental, Social really clear and it is well reported that hand and very bespoke investor
requirements on the other.
and Governance) reporting
requires businesses to disclose their there has been a further acceleration “The associated challenge is
gathering the data on which to
performance across environmental,
social and corporate governance
during the Covid-19 pandemic report. This presents a particular
challenge for fund managers
measures and allows fund managers Jill Arnold, SIS Ventures (above) investing in private companies, with
to understand investment risk and data not as readily available as that
the impact these may have on long- particularly detailed reporting as from public companies.”
term returns. well as the associated data. We are Jill Arnold, the head of SIS
“Companies are screened by funds also starting to see fund manager’s Ventures, describes herself on her
based on their ESG performance rewards, such as carried interest, LinkedIn profile as someone who
to determine whether they should being linked to sophisticated ESG is passionate about “delivering
sit within a portfolio, so it is metrics and impact indicators. commercial outcomes whilst
increasingly valuable for businesses “It is becoming increasingly building harmony and consensus”.
to accurately measure their challenging for fund and asset She says: “It’s very clear that
stakeholder and ESG impact.” managers to keep up with responsible investing criteria
Jan Gruter, a legal director at absolutely can play a very decisive
law firm Addleshaw Goddard, Dr Rutger Zietsma of role in investment decisions and is
part of the firm’s wealth and asset Manus Neurodynamica doing so already.”
management team, says that ESG She highlights an EY report from
factors are becoming more and last year that showed 91 per cent of
more prominent. investors they surveyed said
He said: “Certainly, on the non-financial performance really
investment funds side, we’re seeing played a pivotal role in their
a lot more focus on environmental, investment decision making over
social and corporate governance the past 12 months.
reporting (ESG). This focus is not “That in itself is really the business
just from the regulators, but also case for responsible investing going
from investors, with institutional forward. It’s still a relatively small
investors now often asking for segment of the market, but we do

Curious. Connected. Committed.

We are Grayling. Creating advantage. www.grayling.com

50 INSIDER May 2021 www.insider.co.uk


know that ESG-focused funds broke
through that $1trillion assets under
management level last year. For me,
the direction of travel is really clear
and it is well reported that there has
been a further acceleration during
the Covid-19 pandemic.
“In Scotland, we are already in
a really strong position to pivot
further towards that impact and
ESG investment. The Ethical
Finance Hub did some research that
showed Scottish-based investment
funds actually manage about
11 per cent of the UK’s responsible
investment market, whereas we
manage about seven per cent of
the conventional market, so
Scotland is punching above its
weight already.
“As a whole, I would say there
is a real positive momentum and
drive and an absolute clear business
case there because investors and
consumers are completely bought
into this.”
Positive impact businesses that
SIS Ventures invests in include
Talking Medicines, a Glasgow-
based data tech company that
helps capture the views of patients
to drive more effective medicines;
Good-Loop, which gives a donation
to charity on behalf of companies
every time their videos are viewed;
and Manus Neurodynamica which
has developed the NeuroMotor Pen,
a medical device that evaluates the
fine motor skills of patients with
movement abnormalities.
Arnold highlights the difference
between impact investing and ESG
investing. “I think of ESG as being
quite different to impact,” he says.
“Impact is the main focus of our
impact investment fund, Impact
First, and of any future funds
that we launch and manage but
there is ESG in there as well. I see
ESG as being really about how the
business is run, how do they manage
their operations.
“Most would agree that ESG is
relatively mainstream now. Most
business are becoming more
conscious about the impact they
are having on the environment in
particular, really driven by Greta
Thunberg and David Attenborough
and The Blue Planet before that, and
the upcoming COP26.
Britain’s best-connected communications agency.
We are Grayling. Creating advantage. www.grayling.com
www.insider.co.uk
REPORT: ETHICAL FINANCE
“Most businesses are becoming
Justin MacRae,
Fortunis Capital
aware of their impact on wider
society and giving consideration
to apply good and fair business
practices. Businesses that aren’t
taking ESG seriously are going
to be left behind if they aren’t
already acting on that. Investors
are not going to be looking to
invest in business that aren’t taking
that seriously.
“Impact investing is much more
about contributing to solutions than
about avoiding harm per se. It is in
its infancy, it is only just emerging
and is certainly not mainstream yet,
although that is clearly the desire.
Certainly we, as an organisation,
don’t see it as a competitive sport, it
is very much a collaborative space.
IN FOCUS: Impact Investing “Impact is really about the business
of strategy as opposed to how they
Measuring the impact of investment run the operation, which is much
more ESG. Assuming the impact
Impact investing is an idea whose time has come say its is really at the core of the business’s
proponents. The figures back that up, with impact investing having
product or service offering, it’s about
grown from a niche to a global megatrend worth £2.1 trillion.
the positive impact that business
Justin MacRae, chief operations officer of Fortunis Capital, a
leading UK-based impact investor, says: “The world has moved on can then have on its beneficiaries’
from the old model and we believe that innovation rather than whether that’s its customers, whether
exploitation is key to delivering value for investors.” it’s society at large.
He says that impact investing is complementary to but not the “It is still emerging but it does
same as ESG, which looks at a company’s environmental, social feel like a very pivotal moment for
and governance practices. “Impact investing is about the outcome, both SIS Ventures and the impact
demonstrating a positive benefit to society while delivering strong investment market more broadly,
returns to investors. with Covid really shining a light
‘There is a lot of ‘impact washing’ out there, so it is vital that we on that need for businesses to help
measure the impact through the investment cycle. We were the address society’s biggest challenges
101st signatory to the impact investment principles led by the by looking after people and planet,
International Finance Corporation, the private arm of The World
as well as profit.”
Bank. That means we are independently audited on the outcome
All of this creates a moving
of our investments – on how they make a difference to the lives of
millions while delivering outstanding returns.” picture and one that is quite
So, how does a potential investee qualify for support from impact complex.
investor such as Fortunis Capital? So Arlene Ewing at Brewin
“It is a high bar,” MacRae says. “They need to demonstrate they are Dolphin says that data is key for
addressing a problem worth solving through innovation, produce investors who need to know what
a strong sustainable business plan with global potential and have a they are investing in and whether it
brilliant leadership team.” really meets what they want.
He cites the example of Borofree, formerly Karma, which “Not all ethical funds are created
successfully trialled its interest-free payday advances in Scotland, equal,” she says. “It is important
with the backing of the Scottish Government. for ethical investors to really
Its new app, Borofree, launched in March, has the ambition of consider what matters to them
taking millions out of the vicious cycle of payday loan debt. This is,
and find a fund that aligns with
says MacRae, a perfect example of impact investment at work.
Fortunis has also invested in San Diego biotech Stemson, who
their own goals and beliefs, whilst
are pioneering research into the world’s first cure for hair loss, and still delivering value and return
Clementine, a hypnotherapy wellness app that was rated App of on their investment. For example,
the Day in the Apple store. some funds will incorporate
Justine MacRae says: “In the era of Covid-19, investors are environmentally responsible
more focused on the outcomes of their investments. Creating principles whereas others might be
a better world and delivering industry leading returns are not focused on supporting businesses
mutually exclusive.” within the community.
“In terms of choosing their
May 2021 INSIDER 51
COMMENT REPORT: ETHICAL FINANCE
Ross Laird
Head of Scotland, Amy Williams and Daniel
Grayling Winterstein, founders of
Good-Loop
W: grayling.com

Give your business the edge

with a pro-active investment
in ESG reporting
As many companies take their first steps into ESG reporting
(environmental, social and corporate governance), the link
between ethical finance, investor relations, communications
and your social and environmental credentials on the ground
has never been more apparent.
However, with the increased focus on targets and
analytical reporting that entails, comes increasing scrutiny
from investors and the wider public.
Such targets and more in-depth analysis of the wider
business impacts will undoubtedly put a spotlight on the
current and historical practices of many companies. The
very metrics which ESG reporting demands will create
opportunities for unparalleled scrutiny of companies and
their behaviours, as well as their targets.
Whereas in the past, ethical investment was perceived
to be at the expense of profit, its now viewed as increasingly
symbiotic. How you operate and your impact on the
environment and communities are increasingly defining
company performance, as well as profitability. The pandemic
and COP26 have exacerbated this trend, with more and more
companies agreeing to environmental and social targets.
This is both a collective and individual business endeavour,
which will be heightened as we approach COP26. However,
while much of the limelight at COP26 will be shared by global
leaders, there will also be intense media scrutiny of the
activity of participating companies and their ESG reporting.
Communicating how to meet ESG targets to a sceptical
public and investor audience is rarely easy. The reputation
of many organisations in the past have become unstuck by
accusations of ‘greenwashing’ or poor labour relations.
An increasing number of companies are now turning to
science-based targets to try to set limits on green-house gas
emissions in order to combat climate change. These set a
more measurable, accountable framework. It can be more
difficult at a social and governance level to demonstrate such
impacts on local communities, so it will be important that
companies ensure they have effective monitoring systems
and third-party evaluations to back them up.
This is a competitive space, often seen through the lens
of reputation. Yet the dangers of over-promising or failing to
pro-actively engage communities and audiences throughout
the business ecosystem, including supply chains, can have
significant impact. Taking an evidence-based approach often
pays dividends.
So for those companies which are perceived to misstep,
the fallout can be increasingly damaging, both for the
financial bottom-line and reputationally. Yet, for others which
are pro-active and invest in ESG, the prizes are potentially
ever more significant.
52 INSIDER May 2021
What we have seen is
the death of the Chicago
School, Milton Friedman
economics and ‘it’s all
DERXWSURğWł1RZLWłVDERXW
business with purpose
Mary Campbell, Blas and Resilient Corporates
investment, broadly speaking there are
a couple of approaches for investors to
consider. On the one hand, they can look
at positive screening for a portfolio, which
would only include investments that meet
their particular criteria – for instance,
deciding to only invest in companies that
have a positive impact on the environment.
“The issue with positive screening
is that it may inadvertently concentrate
your investments around a
particular area or industry, which
could sacrifice diversification and,
therefore, make it riskier.
“The second approach is negative
screening, which involves excluding assets
for a particular reason. To take the same
criteria, that might mean excluding oil and
gas companies from a portfolio because
of their carbon footprint. The challenge
here is that this may not eliminate all the
investments you may have an issue with.
“As with any significant financial
decision, the best approach is always to
seek professional advice. Wanting to do
the right thing with your money may have
a host of unanticipated consequences
for your investments, which need to be
analysed and discussed. But, what’s clear
is that ethical – or ESG – investing is here
to stay and it is only likely to become more
mainstream as the world’s priorities change
on the back of the Covid-19 pandemic.”
For companies to pass these ‘ethical
investment tests’, then such values will need
to be embodied by the business leaders and
the boards that support them.
There is more and more thinking on
business that supports this type of view.
Mary Campbell, of corporate finance
house Blas and Resilient Corporates who
does training for boards at the Institute
of Directors, highlights recent academic
research by Colin Mayer, professor of
management studies at Oxford University’s
Said Business School, on trust in business.
She says: “The question he was asking,
without putting it in these words, was:
should directors be taking the equivalent
of the Hippocratic Oath? He doesn’t
express it in those terms, but when he talks
about value and purpose and ‘do no harm’
it is the equivalent of the Hippocratic Oath.
“Now, for the last year, I have been
asking delegates on the courses if they
would say yes or no to this and I can tell
you the only people under the age of 40
who say no – mainly lawyers – when you
ask them why they say it is because they
just don’t know how you would draft it.
“What we have seen is the death of
the Chicago School, Milton Friedman
economics, and ‘it’s all about profit’ to
something else and that transition is
incredibly disruptive. Now, it is all about
business with a purpose.” ■
www.insider.co.uk

THE TRANSFORMATION
TOWARDS ETHICAL
BANKING
Banks were cast as the villain of the piece
in the so-called ‘Great Recession’ of the late
2000s – the last downturn to hit our economy
before the coronavirus pandemic. Their role in
the subprime mortgage debacle led directly
to a global financial crisis and the deepest UK
recession since the Second World War.
By contrast, in the latest economic downturn
triggered by the COVID-19 lockdown in 2020, the
banking industry played a crucial role in stabilising
our economy. Bolstered by healthy capital levels
after the structural reforms of the past decade,
banks have acted as a conduit, transmitting
essential government stimulus programmes
directly to businesses in need of financial support.
Their collective response to the pandemic vividly
demonstrates how a purposeful banking industry
can be a force for good.
Banking is undergoing a transformation. The
archetypal London banker, sporting a bowler hat,
three-piece suit and umbrella, has been consigned
to history. Even the red braces that typified the
brash City casino culture after the ‘Big Bang’ of
1986 – the deregulation of investment banking
– are from a bygone age. But the changes in
banking are not about dress codes or appropriate
attire.
There is a changing perception of what
constitutes good corporate performance in
the banking sector – a greater focus on the
importance of delivering financial services
ethically. It is part of a wider shift in society to
reassess the role and purpose of commerce,
beyond simply generating profits for the providers
of capital.
Peter Alderdice is a legal director in the banking and finance team at Shepherd and
Wedderburn LLP. For more information, contact Peter on 0131 473 5427 or at
peter.alderdice@shepwedd.com
Financial regulators are leading the charge.
Last month, Nikhil Rathi, Chief Executive of the
Financial Conduct Authority, gave a speech
on why diversity and inclusion are regulatory
issues, pointing out that a lack of diversity in the
boardroom raises questions about a firm’s ability
to understand its customers. In essence, greater
diversity at the top reduces the risk profile of a
financial institution and makes it more resilient.
Efforts are being set in train across the financial
sector to address shortcomings in corporate
culture. For example, Lloyd’s of London, the
specialist insurance market that began in Edward
Lloyd’s coffee house in the 17th century, has set a
diversity policy as part of its work to drive a cultural
transformation following a raft of complaints
about bullying and sexism.
Improvements in diversity and inclusion
represent just one strand of a broader
transformation, as banks seek to integrate an
analysis of environmental, social and governance
(ESG) factors into their day-to-day operations and
core business strategy. The growing importance
to the banking industry of ESG factors cannot be
Peter Alderdice
MARKET COMMENTARY
overstated. Recently, Her Majesty’s Treasury wrote
to the Bank of England and the Financial Conduct
Authority with a recommendation that every
financial decision should take climate change into
account.
Those remit letters issued to the UK’s principal
financial regulators follow hot on the heels of
comments by Mark Carney, former Governor of
the Bank of England, that smarter investment is
needed to avert millions of deaths from climate
change. According to Carney, the number of
deaths attributable to the climate crisis will be
higher than that caused by COVID-19.
Banks are now responding to the call to deliver
investment in a smarter way by developing new
financial products such as green mortgages aimed
at climate-conscious retail borrowers. Green
mortgages offer homebuyers a lower interest
rate to purchase an energy efficient new-build
property or to renovate an existing one in order to
make it greener.
Corporate lending divisions within banks
are also starting to transition their loan books
to ensure a greater focus on green loans and
sustainability-linked loans, where companies
are incentivised to use their borrowings to fund
green projects or achieve other sustainability
performance targets.
The challenge of embedding ESG factors into
all aspects of everyday banking is formidable, but
significant progress has already been made. There
is a genuine appetite within banks to continue the
transformation towards a more purposeful and
ethical banking industry that serves and supports
the economy.
 Corporate, commercial,
capable.
Key Deals Completed in Q1 2021

Wholesale Domestic – Advising
Scotland’s leading bathroom supplier
in the evolution of the company’s
shareholder base to position
the business for future growth,
backed by Santander
UK plc
Cryo Pump Repairs – Advising the
shareholders of Cryo Pump Repairs
on its disposal to global
engineering group Torishima
Service Solutions
Europe
EKOS Consultants - Advising the
shareholders of EKOS Consulting
UK, the independent research and
creative solutions provider, in its
disposal to The Growth
Company
High Voltage Instruments –
Advising the shareholders of HVIL
the designer and manufacturer of
test equipment in its disposal to
T&R Test Holdings

Contraflow - Advising the leading
road traffic management specialist,
in the evolution of the company’s
family shareholder base to
position the company for
future growth
Mandors – Advising Samira
Fabrics (Pvt) Ltd on the acquisition
of Mandors, the leading fabric,
wallpapers, curtain &
haberdashery retailer /
designer
KD Doors – Advising the
management team of KD Doors,
the leading industrial doors
solution provider, on the MBO
of the business
Nutdust - Advising high growth
Scottish body powder retailer on
shareholder matters to position
the business for future
growth

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(Legal 500 2021)

Legal 500 Leading Firm 2021

Legal 500 Recommended Lawyers 2021
The Times Best Law Firm 2021 for Mergers & Acquisitions
(new entrant)
Member Firm of International
Commercial Law Alliance
from 2021

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in association with
ACTIVITY
BOUNCES
BACK TO DEFY
FORECASTS
By PERRY GOURLEY
W
ITH THE ink drying
on the Brexit trade
deal and the
vaccination
programme getting into full swing,
Scotland’s dealmakers benefited
from the growing appetite for
corporate activity seen in many
boardrooms during the first quarter
of the year.
Agreements to buy two of
Scotland’s best-known public
companies, two Aim flotations,
and a flurry of big-ticket North Sea
transactions underlined growing
confidence against a backdrop of the
most active start to a year for global
deal-making in four decades.
According to David Beveridge,
Glasgow-based managing director
of corporate law firm Macdonald
Henderson, few dealmakers could
have forecast the market would be as
buoyant as it currently is.
“Obviously some sectors, such as
hospitality, have been hit very
hard. But others, such as financial
services, technology, health research
Corporate, commercial, capable.
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and pharma, are very strong right
now,” says Beveridge.
He believes the impact of Covid-19
will also serve as something as a
leveller in the advisory community.
“For niche firms, in particular, I
think not having big shiny offices to
invite clients to will now be
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David Beveridge, Macdonald Henderson (below) innovation at the top of many
much less of an issue. With
transactions increasingly being
progressed virtually, it is more about
being sure you can deliver, on time
and on budget.”
Angela Toner, head of due diligence
in Scotland for RSM, also reports the
deals market has recovered well “and
in some ways exceeded expectations
with levels of activity”.
“Consolidation in the wealth
Q4 DEALS: ROUND-UP
Above: Forth Ports management and IFA sectors, the
Dundee Oil rig threat of capital gains tax increases
being towed out to before the UK Budget, and private
see by tugs equity liquidity have all accelerated
deal activity,” says Toner, whose team
has recently been bolstered by a
number of new hires.
David Kirchin, head of Scotland
at Addleshaw Goddard, says the
impact of the pandemic is driving
heightened levels of M&A activity
as firms look to grow and diversify
their service offerings.
“This is apparent across a number
of sectors but particularly so in tech,
where there has been a significant
shift in M&A activity, with digital
boardroom agendas.
“As the country emerges from a
sustained period of lockdown, a
key priority will be M&A activity,
which will help clients strengthen
their balance sheets, aiding the
economic recovery.”
Paddy Graham, head of BGF’s
Central Scotland and Northern
Ireland, team which invested more
than £37m in Scotland last year
across 12 businesses, says business
May 2021 INSIDER 55
Q4 DEALS: ROUND-UP
owners’ experience of the pandemic
has prompted more M&A activity.
“Some are looking to sell up and
retire now that it seems we have
turned the corner on Covid-19, while
others have been forced to look at
exit options as they contend with
trading in the new normal,” he says.
“Over the past few months, some
businesses have also been looking
to revisit their capital structures and
assess the right funding structure
to drive their business forward and
strengthen their balance sheets
after taking on additional debt. As
Government initiatives come to an
end and businesses turn to alternative
forms of finance, including equity
funding, we expect this to be an
ongoing trend during the next 12 to
18 months.”
The stock market debuts of Thurso
battery cell firm AMTE Power and
Edinburgh ready-meal business
Parsley Box made it the most active
quarter for Scottish flotations in more
than five years.
AMTE became the second Scottish
Swansons Food Wholesalers staff, Inverness
firm to list on Aim in six months
following telecoms firm Calnex
Solutions last autumn. The company,
which works with leading motoring
Some businesses have been looking Axios Systems, a global provider
of cloud-based software for an
industry names such as Cosworth to assess the right funding structure undisclosed sum.

to drive their business forward and

and Williams, secured £13.7m from In domestic transactions,
existing and new investors, nearly educational technology specialist

strengthen their balance sheets

twice the £7m it was originally
seeking and will use the proceeds to
finance working capital requirements.
Ready-meal business Parsley Box
raised £17m via a share offering
ahead of being listed with an initial
market cap of £83.8m.
The move came after strong
growth for the firm, which focuses on
delivering meals to “Baby Boomer-
plus” consumers. A team from RSM,
which also worked on the Calnex
float, advised on the deal.
Although the two floats were
welcome news for dealmakers, the
quarter brought announcements that
are set to see two existing quoted
firms leave the public markets.
Glasgow-based Aggreko, a
stalwart of Scotland’s quoted
company list for more than two
decades, accepted a £2.3bn takeover
by private equity firms I Squared
Capital and TDR Capital.
Edinburgh-headquartered fintech
Nucleus, which floated on Aim three
Paddy Graham, BGF
years ago, also agreed a £144.6m
deal to sell its business to sector rival
James Hay.
The quarter also saw another raft
of deals by overseas firms to buy
Scottish businesses.
Significant transactions included
Glasgow-based fintech firm HubSolv
being sold to Dublin-founded
software and data services group
Aryza for an undisclosed sum.
Neil McInnes, head of corporate
finance at Grant Thornton in
Scotland which advised HubSolv,
says the deal was a significant vote of
confidence in what founders Lewis
Black and Fraser Hamilton – who
will remain with the company – had
achieved to date.
In another technology deal,
Swedish-headquartered IFS
struck a deal to purchase Edinburgh’s
Tes Global acquired Glasgow-based
SchoolCloud, which has developed
software to help schools manage
parents’ evenings and school events.
SchoolCloud was founded in 2006
by two students, Robbie Beattie and
Marcus Fields, who had been given
a challenge by their IT teacher to
solve a school-wide issue of room
double-bookings. The company’s
software is now used by more than
6,000 schools. Beattie said being
part of Tes Global would give the
company’s products have access to
a much wider audience around the
world. Addleshaw Goddard advised
SchoolCloud’s shareholders.
In another tech deal, Aberdeen’s
C-Sam which provides software
for the energy and marine sectors,
was acquired by Oxfordshire-based
Jonas Software in a deal advised on
by AAB.
Bruce Stevenson Insurance
Brokers, one of the best-known
Laurna Woods independent players in the sector,

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56 INSIDER May 2021 www.insider.co.uk


was acquired by Aston Lark, a broker
backed by Goldman Sachs.
A number of Scottish businesses
were also active during the period,
including Forth Ports which acquired
marine services business Targe which
owns a fleet of nine vessels including
tugs which operate in waters
throughout the East of Scotland.
Charles Hammond, group
chief executive of Forth Ports,
described it as an important strategic
move, “establishing a commercial
marine services business of scale”.
Advisors included PwC’s corporate
finance team in Scotland and
Addleshaw Goddard.
Scottish estate agency and lettings
group Lomond also completed
four acquisitions across Edinburgh,
Manchester and Brighton following
a merger deal with Linley & Simpson.
Sponge, an Edinburgh-based
digital learning provider, which
is backed by support services
investor Aliter Capital, acquired
Idox Compliance from its parent
company. The acquisition provides
Sponge with an operating presence
in the EU.
DWF’s global corporate team,
led by Gemma Gallagher and Paul
Pignatelli in Glasgow, advised Sponge
with support from teams in the UK,
Germany, Belgium and Holland with
Idox represented by a team from
Pinsent Masons.
Although it was a relatively quiet
quarter for buyouts, there were a
number of high-profile transactions,
including an MBO of Beattie
Communications led by Laurna
Woods after former chairman
Gordon Beattie resigned following a
controversial social media post.
Woods was joined in the buyout
by senior colleagues Elspeth Brown,
Joanne Spence, Rachel Gladwin and
Chris Gilmour.
Three long-standing employees
of Contract Scotland, the Stirling-
based technical and professional
recruitment consultancy, completed
an MBO from founder Colin
Woodward. Directors John-Paul
Toner, Julie Fleming and Alan
Shave now lead the business, while
Woodward takes up an advisory role.
A management buy-in at
Scottish shipping container firm RF
Brown – led by plant-hire veteran
Corporate, commercial, capable.
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Contract
Scotland John-
Paul Toner
This big push is driven by their
institutional investors demanding
a pivot that would have been
unthinkable only a few years ago
Rosalie Chadwick, Pinsent Masons
and incoming managing director
Angus Barraclough – was backed
by a £2.35m investment from fund
manager Foresight.
The increasingly popularity of
employee buyouts saw several
firms also come under the control of
their staff, including Inverness-based
fresh produce provider Swansons
Food Wholesalers.
Owner Magnus Swanson had
received an offer for the business
from a larger wholesaler last year,
prompting him to begin considering
Q4 DEALS: ROUND-UP
his eventual exit from the business.
The move to employee ownership
was managed by Carole Leslie’s
Ownership Associates, with legal
services provided by Harper
Macleod and accountancy services
by Saffery Champness.
The quarter also saw a number
of significant investment deals,
particularly in the technology and life
sciences arenas.
University of Dundee
biopharmaceutical spin-out
Amphista Therapeutics secured
£38m in a Series B financing round,
one of the largest investments of its
kind seen in Scotland.
The investment round was co-led
by Forbion and Gilde Healthcare,
while additional investors include
Novartis Venture Fund and Eli Lilly
& Company.
SujiBFR, a health and fitness start-
up based in Edinburgh, received a
six-figure investment to support the
development of a smart fitness device
that can dramatically reduce pain
and increase muscle strength during
exercise. Tennis champion Jamie
Murray and his partner Alejandra
Murray invested in the round led
by BioCity Group. The Murrays
joined Scottish Enterprise, Gabriel
Investment Syndicate and Creator
Fund. SujiBFR was represented by
Addleshaw Goddard.
Continulus, the Glasgow-
headquartered online video-learning
platform for health professionals,
secured £500,000 of equity
investment from a consortium
of UK investors.
ClinSpec Diagnostics, the
Glasgow-based developer of liquid
biopsies for early detection of cancer,
reached a round-two funding target
of £3.5m by securing an additional
Above: Dr David investment of £1.1m from Norcliffe
Palmer, Dr Holly Capital, the university, Eos Advisory
Butler, Dr Matthew and the founders.
Baker, Dr Mark Murray Capital, the private
Hegarty of ClinSpec investment office of the Murray
family, also led funding rounds for
two Scottish start-ups.
It reinvested in two of its existing
portfolio companies – Zumo and
Blackford – with the support of
the UK Future Fund and other
co-investors. Zumo, a Leith-based
digital currency wallet and payments
platform, raised £1.4m. Blackford, an
May 2021 INSIDER 57
Q4 DEALS: ROUND-UP
insurance brokerage with offices in
Aberdeen, Edinburgh, Glasgow and
London, secured £800,000.
RAB-Microfluidics, a start-up out
of the University of Aberdeen that
has developed technology to address
oil analysis problems, secured a
£1.24m investment round led by Eos
Advisory and advised on by MHA
Henderson Loggie.
Aberdeen-headquartered oil
and gas technology development
company Deep Casing Tools secured
fresh investment of £1.6m to develop
new technologies from Scottish
Enterprise and long-term backer EV
Private Equity.
Scottish Equity Partners also
completed a “significant” investment
in Glasgow-based fintech firm
AutoRek, which develops financial
control and data management
software.
Signs that investors are returning
to the North Sea continued apace
in the opening months of 2020
with a series of sizeable deals. NEO Deep Casing
Energy, backed by Norwegian private Tools Aberdeen
Workshop
equity player HitecVision, struck an
agreement to buy a portfolio of North
Sea assets from ExxonMobil for
around £700m, as well as a smaller Despite the UK’s maturity, the deals years ago.”
She argues activity will also benefit
transaction to acquire Zennor
Petroleum. highlight the attractiveness of the from a more realistic approach by
sellers who now take the view that
Waldorf Production, advised
by Addleshaw Goddard, agree to
country’s relatively low headline tax valuation gaps can be met because
there is greater consensus on the
acquire a package of Cairn Energy’s
North Sea assets, including Kraken
rate which enables assets to generate longer-term price of oil.
“Deals that may have fallen over
and Catcher.
Neivan Boroujerdi, an analyst
IUHHFDVKĠRZNeivan Boroujerdi, WoodMac because price consensus could not be
reached now have a greater chance of
at WoodMac says the NEO and success.”
Waldorf investments,” predicts Boroujerdi. The sustainability theme, driving
deals continued what has been a With oil majors such as Total much of the M&A activity as majors
“blockbuster start to the year for UK and Chevron divesting portfolios of look to diversify into lower carbon
M&A” with buyers and sellers buoyed North Sea assets, Rosalie Chadwick, areas, also
by the recent recovery in prices. global head has wider implications for the deals
“Despite the UK’s maturity, the of oil and gas for Pinsent Masons, landscape ahead, according to Paul
deals highlight the attractiveness of believes M&A activity will remain Mason, head of corporate finance at
the strong in the months ahead. accountants Chiene + Tait.
country’s relatively low headline tax “This exit from non-core mature He says that sustainability is
rate, which enables assets to generate assets allows capital to be redeployed becoming an increasingly relevant
significant free cash flow at current in geographies where they can meet theme on transactions, especially
prices.” their target investment criteria – or equity raises.
WoodMac estimates up to another into “While companies looking to
$5bn worth of assets could change energy transition assets, particularly raise money or put themselves up
hands this year. offshore wind, solar, CCS and for sale might not be in a position
“The list of UK sellers is broad. The hydrogen,” she says. to change to an entirely sustainable
supermajor sell-off will continue and “This big push is driven by their business model, they will certainly be
other private equity-backed vehicles institutional investors demanding more likely to achieve their aims by
may look to follow Zennor-backer a pivot that would have been developing their offering to be more
Kerogen’s lead and monetise their unthinkable on this scale only a few ESG-conscious,” he argues. ■

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COVID AFTERMATH MARKET PROVING TO
MORE RESILIENT THAN ANTICIPATED
Despite initial reports of a slow recovery of
M&A activity in the UK after the immediate
aftermath of the first COVID-19 national
lockdown, it has become apparent that
the market has been more resilient than
anticipated. We are seeing a sustained level of
deal activity with more to come.
While a healthy cash flow for many businesses
has been sustained due to the availability of
government, bank and shareholder support
during the pandemic, it is inevitable that this
cash flow will take a hit as we return to ‘business
as usual’, particularly those businesses with
existing high levels of debt. It is predicted that
an increased level of distressed M&A activity can
be expected and this creates opportunities for
investors and strong trade buyers.
Taking an interest in a company that is not
subject to the imminent threat of an insolvency
process may be the perfect time for a buyer –
customers, suppliers and key employees will
remain in place, and most importantly supportive,
before the business and its reputation is damaged
and the only ‘option’ is insolvency.
Structuring such a transaction will be key – and
there will be advantages and disadvantages
of the transaction being either a share sale or
an asset sale. A buyer may wish to structure an
acquisition as an asset sale because it can “cherry
pick” and choose the assets it wants and, exclude
any unknown or contingent liabilities, also
lessening the burden of a due diligence process.
Laura McKnight is a Director in Macdonald Henderson’s corporate team.
For more information contact Laura at laura@macdonaldhenderson.co.uk
Sellers, however, will usually prefer a share sale
for simplicity and from an advantageous tax
perspective.
Where an insolvency process is imminent
however, the parties may wish to seek the
assistance of an insolvency practitioner who can
(subject to the legislation) negotiate a ‘pre-pack’
sale. Pre-packs tend to be popular with both a
seller and a buyer as the buyer takes assets free
of liabilities and the directors take on more of a
limited risk in terms of the sale and the valuation
of the business.
What we can say, with confidence, is that
whatever the structure of the transaction chosen,
the process will be time pressured and both
parties will wish the process to be executed
quickly – over to the advisers!
When a company is, or is likely to become
distressed, directors must have regard to the
following key areas:
MARKET COMMENTARY
Statutory and fiduciary duties – directors have
duties to promote the success of the company, to
exercise reasonable care, skill and diligence, and
to be mindful of any conflicts of interest. Acting in
the best interests of the company will be of more
importance while a company is in distress.
Creditors – directors should bear in mind
the interests of creditors and it important to
remember that directors could face personal
liability where there has been wrongful or
fraudulent trading. Directors should consider
whether an insolvency practitioner requires to be
appointed.
Approvals – competition approvals for deal
clearance will require to be considered. Further,
listed companies must have regard to their
disclosure obligations, however the Takeover
Code contains some relaxations where a listed
company is in financial distress.
Employees – ensuring key employees remain
‘on board’ will be vital. Despite troubling times,
we are already seeing an increased appetite to
incentivise employees by way of EMI option
schemes, growth shares, bonus schemes
and the like.
Timing will be key for both sellers and buyers
but if the dynamics of a sale are managed
correctly we could see sustained businesses
survive, sellers getting some cash for their
business, and a buyer getting a good deal.
We look forward to working on some of these
exciting transactions soon.
PROFILE: JACQUI MCLAUGHLIN, CEO OF REACTEC

J
ACQUI McLaughlin isn’t
afraid of a clean slate. She’s
been working in technology
for the heavy engineering
sector since 2014 as the chief
executive of Edinburgh-based
Reactec, a company best known for
its HAVwear technology, a wearable
product designed to help combat
risks associated with prolonged
exposure to tool vibration; but when
McLaughlin arrived at Reactec seven
years ago, HAVwear didn’t exist.
The company offered a tool-
mounted product that monitored
vibration exposure, but it didn’t
offer the ground-breaking, real-time
monitoring of an individual’s risk
from exposure to vibration that makes
HAVwear so unique and valuable.
It was McLaughlin that
conceptualised the product in the
first place, when she posed the
almost painfully obvious question:
if you’re trying to monitor the effect
of vibration on someone’s hand, why
aren’t you using a device that can
measure what’s happening to their
hand in the first place?
No-one had an answer that
could undermine her premise, and
HAVwear went into development in
2015. In her second year on the job,
McLaughlin guided the company
CEO BATTLING TO
through the dangerous transition
of introducing a product likely to
cannibalise its existing offering.
CHANGE BUSINESS
As it turned out, the only risk
associated with that transition was
underestimating just what percentage
of Reactec’s sales would be for the
AND CHANGE MINDS
Kathryn Hester on the woman spearheading revolution in safety
new product moving forward:
within three months, 100 per cent of hand-arm vibration and social in various business leadership
Reactec’s sales were for HAVwear. distancing are completely unrelated, roles within Smiths Group, the
After spearheading such a bold but McLaughlin saw the opportunity multinational engineering firm
transition, it should come as no to apply Reactec’s ground-breaking known for its innovative approach
surprise that McLaughlin once core technology in a useful, practical to technologies in the space, aviation
again successfully navigated Reactec and medical industries.
through what will likely be recognised
as the greatest threat to workplace McLaughlin addressed the need for At Smiths, McLaughlin addressed
the need for increased employee
health and safety in a generation.
When Covid interrupted business increased employee empowerment empowerment within a $500m
business unit, but she didn’t c
as usual in early 2020, Reactec
pivoted to address the challenges but she didn’t choose the subtle route hoose the subtle route. McLaughlin
radically changed the operational
posed by increased restrictions in the processes within the environment
workplace and introduced its Safe- way. In that sense, the response was and created platforms to leverage
Distance technology: sophisticated obvious: Jacqui McLaughlin has a market intelligence across product
proximity detection to facilitate penchant for making bold decisions streams. The result was a seamless
social distancing. The technology that make sense. expansion and integration effort with
was a hit: thousands of units of the Pushing the boundaries of a premium focus on innovation and
product were deployed in a variety technology and turning ideas into worker-driven solutions.
of workplaces within months of useful applications has been the That drive – to meaningfully
identifying the need. northernmost point on McLaughlin’s impact the way that people actually
Such a unique, meaningful professional compass throughout her work through the implementation of
response to a global workplace career. Prior to joining Reactec, she boundary-pushing technology – is at
challenge wasn’t necessarily obvious: spent nearly two decades working the heart of what pushes McLaughlin
60 INSIDER May 2021 www.insider.co.uk

and Reactec to do what they do, and
they’ve only just gotten started.
With McLaughlin at the helm,
Reactec is looking forward and has
immediate plans to enhance their
existing offerings with the addition
of innovative technologies to keep
workers connected. The idea driving
Reactec’s current innovations is
seemingly simple: a connected worker
is a protected worker. The reality is
that getting workers connected isn’t as
straightforward as it sounds.
Reactec believes that workers
in heavy industry (construction,
rail, manufacturing, etc) should be
protected from exposure to things
like vibration, noise, dust and unsafe
proximity to dangerous work areas.
Sounds reasonable, right? Not only
is this philosophy reasonable, but
its renaissance is also long overdue,
and that delay persists at the cost of
workers’ health and safety, not to
mention the company’s bottom line.
It’s no secret that many companies
within this sector have been slow to
digitise: pen and paper methods for
tracking things like tool usage remain
the norm across an alarming number
of worksites, within even blue chip
companies, a shocking reality when
you consider the accessibility and
efficiency of a digital alternative.
Reactec generates analytics reports
that pinpoint areas where additional
attention is needed to improve
controls. Following adoption of its
technology, Reactec’s customers have
successfully implemented initiatives to
better train operators, more effectively
plan and manage tool rotation,
and monitor job/task schedules.
These processes reduce exposure to
dangerous conditions, improving
workers’ health and safety, and save
companies time, money and potential
exposure to workplace injury-related
claims, fines and litigation.
So why doesn’t every worker in
construction, manufacturing and
related industries have Reactec’s
products strapped to their wrist? That’s
a big conversation, but McLaughlin
thinks some of the reticence stems
from an industry-wide attitude that
keeping workers safe is a by-product
of staying compliant, not a legitimate
priority in its own right.
Currently, firms’ approaches to
health risk management are driven
by the need to remain in-line with
relevant regulations in order to avoid
penalties, not by the desire to keep
their workforce protected.
Chipping away at this outdated,
www.insider.co.uk
PROFILE: JACQUI MCLAUGHLIN, CEO OF REACTEC
outmoded viewpoint would be a
massive task for any executive in
McLaughlin’s position and, given
the businesses with which she works
on a daily basis – heavy engineering
firms, primarily – you could
reasonably wonder whether the
task is tougher for her because of
her gender.
The reality is that the opposite
seems to be true; McLaughlin is
a deft and confident leader in the
male-dominated spaces in which she
operates: a woman finding success
(again and again) where, historically,
males have monopolised the power.
Even so, if you ask her, the
unique ability she has to navigate
a team through this process has
less to do with her gender than
it does her professional – and
personal – experience as a team
leader (McLaughlin has clocked
45 caps representing Scotland as a
competitive hockey player), but it’s
a bare fact that firms with females
in executive roles like the one
occupied by McLaughlin are not only
more profitable and more socially
responsible, they’re more adaptable
and willing to challenge the status quo
than their male counterparts.
This adaptability and eagerness
to challenge what is in order to
make space for what could be is a
Above: Reactec’s Safe-Distance technology in operation at Dundee’s Rau-
tomead, a manufacturer of continuous castings. James Franco, Financial
hallmark of female leadership, and
Controller, and Jan Barclay, Executive PA, Rautomead, Dundee. Below: it’s unquestionably been baked into
Callum Robson, Design Engineer, and Andy Stupart, Inspection / Stores, Reactec’s ethos. It calls itself a pioneer
Rautomead. Photos: Alan Richardson in “prevention engineering”, but
there’s more going on at Reactec than
Stale, outmoded process designed
building products designed to prevent
known problems. Reactec isn’t just
to work well enough don’t work at all preventing problems that have
plagued work environments for years,
when it comes to McLaughlin’s ideas it’s more kinetic than that.
As its name suggests, Reactec
for creating a healthier workplace is a responsive, evolving entity
in a landscape long-dominated by
rigid, oft-outdated systems. In
this conventional environment,
Reactec stands out as agile, curious
and hopeful.
Stale, outmoded processes
designed to work well enough don’t
work at all when it comes to Jacqui
McLaughlin’s ideas for creating a
healthier workplace. In fact, when it
comes to making work environments
healthier and safer, the only thing it
doesn’t seem safe to do at this point, is
underestimate her. ■
Kathryn Hester is an attorney and
content strategist who works with
innovative technology companies and
their leaders.
May 2021 INSIDER 61
REPORT: THE PANDEMIC ECONOMY

F
OR ALL the political argy
bargy and the sharp words
flying between Holyrood
and Westminster, the
best research we have to date
has concluded that the devolved
funding arrangements “largely
coped” with the Covid-19 crisis.
A major study by academics
from the Institute of Fiscal Studies,
Fraser of Allander Institute and
the University of Stirling said this
was achieved as a result of a
combination of luck, the huge
sums of money provided by the
UK Government and an ad hoc
bypassing of the normal rules.
But, as the study said, there were
“some tricky moments”. These were
“notably at the beginning of the crisis,
when the devolved governments had
to wait for confirmation of funding
following the announcements of new
English spending, and in the autumn
as the second wave hit.”
However, there was generally good
design of policy and the necessary
flexibility to cope with what were
novel – and huge – challenges.
As the study points out, the UK
Government eventually bypassed
the normal rules by giving up-front
guarantees and allowing them the
flexibility to carry forward funding
between years.
The study concludes: “This gave the
devolved governments more certainty
to plan their Covid-19 responses and
helped avoid a wasteful rush to spend
money at the end of the year.”
THE GOOD, THE BAD
But the changes did not stop
Kate Forbes MSP, then Finance
Secretary, continually criticising the
UK Government.
AND UGLY TRUTHS
The study then points out “such
ad-hoc changes are not suitable
for the long term and may not be
granted by future UK governments if
LAID BARE BY CRISIS
By KEN SYMON devolved governments the resources
other major crises arise. and flexibility they need to meet the
“It has also been lucky that the
crisis did not disproportionately If a future crisis affected one part of evolving demands of the pandemic.
“Nonetheless, whilst crises have
impact one or more of the devolved
nations more than England, either the UK harder than elsewhere, bigger been avoided, at times this has
perhaps only narrowly been the
economically or health-wise.
“If it had done, funding based on problems could arise down the line case. Uncertainty around whether
the furlough scheme would be
how much was spent in England David Phillips, Institute of Fiscal Studies available within a devolved nation
could have been insufficient. And if a devolved government felt the
there is no guarantee that future crises David Eiser, senior knowledge Above: Kate Forbes, the need to apply tighter restrictions
– or indeed recovery from the current exchange fellow at the Fraser of then Finance Secretary than prevailed in England may have
one – will be similarly symmetric. Allander Institute and an author of the repeatedly attacked influenced the timing of restrictions
“It is, therefore, important to report, said: “The shift away from the the Westminster in Scotland and Wales at various
consider how the fiscal frameworks usual process of allocating funding by Government points. But, in the end, the UK
can be made more robust to future Barnett consequentials to the concept Government’s decision to extend
crises, and better able to support of funding ‘guarantees’ has been lockdown in England averted major
recovery from the current crisis”. critically important in providing the crisis around this issue.”
62 INSIDER May 2021 www.insider.co.uk

David Phillips, an associate director
at the IFS, and co-author of the report,
said: “Luck – or the fact each of the
nations was similarly unlucky in
terms of the impact of the Covid-19
crisis – and ad hoc temporary changes
to the usual rules helped avert major
problems. In particular, the fact the
path of the pandemic and economy
has evolved in similar ways across
the UK, and required similar policy
interventions, avoided big differences
in funding needs from opening up.
“And up-front funding guarantees
and the ability to shift more funding
from one year to the next has given
the devolved governments both more
financial certainty and flexibility.
“But, if a future crisis affected one
part of the UK much harder than
elsewhere, or indeed if recovery is
uneven across the country, bigger
problems could arise down the line.
It is, therefore, still vital to assess, and
potentially change, the frameworks to
make them more robust.”
Whatever changes need to be
made in future, we can conclude that
the devolved funding arrangements
largely worked as did the furlough
scheme in saving many more
thousands of jobs and businesses than
would otherwise have been the case.
But none of this should take away
from the severity of the position we
still find ourselves in – the economy
has a long way to go to get back
to health and there are still many
thousands of businesses still in a
very precarious position. How many
of them are effectively “zombie
businesses” just being propped up?
The latest Red Flag Alert data
published towards the end of April
by Begbies Traynor, the “rescue
and recovery specialist”, shows a
45 per cent year-on-year rise in the
early signs of financial distress, with
38,000 businesses in the country
now affected. The first quarter of this
calendar year saw a 17 per cent rise in
companies experiencing “significant
distress” in Scotland compared with
the last quarter of 2020.
However, the research also showed
some good news in the fact there was
a striking decrease in the numbers
of businesses experiencing the more
advanced “critical distress” – that
is those that have had winding-up
petitions or legal decrees totalling
more than £5,000 against them.
Critical distress among Scottish
businesses fell by 48 per cent year
on year, and saw a drop of 13 per
www.insider.co.uk
REPORT: THE PANDEMIC ECONOMY
the last quarter, this is almost exactly
mirrored by the increase in early
distress. Although the government
has been successful in delaying
liquidations and bankruptcies,
there is still an enormous quantity
of financial trouble being stored up
for when these and other support
measures come to an end, which is
likely to be later this year.”
The other significant question
Ken Pattullo of is how much ‘delay’ is there in the
Begbies Traynor transmission of this picture. As
who is warning that Pattullo says: “With the courts still
38,000 Scottish struggling to catch up on the backlog,
businesses are still there are likely to be many more
in distress actions against indebted companies
in the pipeline.”
Amid these continuing difficulties,
there is also a strong feeling among
many businesses that government is
not listening to their concerns nor
aware of how very real and acute the
problems they are facing are.
Joanne Dooey, president of the
Scottish Passenger Agents Association,
said there was apparently “very little
understanding of how the travel
business works” as the body issued
its manifesto for the Scottish
Parliament election.
In the second-last week of
April, I chaired a hustings for the
entrepreneurial business organisation
WeDO Scotland. It was a lively
Above: Joanne Dooey of the Scottish Passenger Agents Association meeting of the candidates of the
which has stated that there is “very little understanding on how the travel four main parties, with many
business works” among Scotland’s politicians questions from the business leaders
that attended. There were concerns
With courts struggling to catch up, about the continuing severity of
the restrictions on different sectors
there are likely to be many more and about whether all the money
provided by the UK Government to
actions against indebted companies be spent on business Covid relief was
actually being so spent.
Ken Puttullo, Begbies Traynor But the most striking thing that
came across time and again was the
cent compared with the previous suggestion MSPs – and, it must be said
quarter. This means there are – the outgoing Scottish Government
fewer companies ‘drinking in the in particular were not listening to, and
last-chance saloon’ and suggests heeding, their very real concerns.
government insolvency protection This chimes with other survey
measures are having an impact. evidence and the summing up by a
But, as Ken Pattullo, managing chief executive of a representative
partner for Begbies Traynor in body a few weeks ago that “Scottish
Scotland, puts it: “After more than 12 ministers have lost the dressing
months of multiple lockdowns and room” with businesses.
restrictions, the true extent of the With a new Scottish Parliament
financial pressures facing businesses of 129 constituency and list MSPs
is still largely being masked by the having now been elected and a new
government’s insolvency prevention Government being formed we can
measures which makes these latest only hope this will change and that
figures even more concerning. we will see a new attitude resulting in
“While there has been a striking positive decisions and action in the
reduction in advanced distress in months and years ahead. ■
May 2021 INSIDER 63
ROUND TABLE: GREEN INVESTMENT
COMPANIES EMBRACE THE
CLIMATE CHANGE CHALLENGE
By KEN SYMON
PANEL MEMBERS
Darren Flynn
MD, Wealth and Asset Managers &
Regional Head for Scotland, Bank of
Scotland Commercial Banking
Jeavon Lolay
Head of Economics & Market Insight,
Lloyds Bank Commercial Banking
Gordon Farmer
CFO, Global Energy Group
Paul Stevenson
Director, GSS Developments Ltd
& Ribnort Ltd
Charles Wordie
Director,
Wordie Properties Ltd
Warren Bowden
Group Sustainability and
Innovation Director,
Scottish Leather Group
Anne Anderson
Head of Sustainability,
Scottish Sea Farms
Martyn Link
Chief Strategy Officer,
Wood Group
64 INSIDER May 2021
in association with
QJeavon, would you like to set
the scene with the economic
Darren Flynn
backdrop to today’s discussion?
Jeavon Lolay: The one thing we can
say with confidence is that there
remains an extraordinary degree of
uncertainty regarding the economic
outlook.
A lot of my discussions at client
meetings and with other economists
are still centred on the risks: what
we’re seeing in Europe in relation to
the resurgence in infections and in
the US about inflation worries. This
acutely reflects the nature and scale
of this ongoing economic shock and
also the unprecedented response from
policymakers.
There is still a lot to unfold: the
path of the virus, the reopening speak to our clients, one of the key
of economies, the phasing out themes coming across is that while
of emergency policy support, all firms have been impacted, this
changed consumption habits, and recession has been highly divergent at
the disruption to existing business the sector level.
models – and that’s for starters! If you look at hospitality; in the first
Having said all that, I should also lockdown, output was down 90 per
emphasise that the overall tone is far cent, and January-to-January it was
more upbeat than earlier in the year; still down nearly 70 per cent.
in fact, it’s far more positive than it has Whereas in manufacturing, in the
been for some time, particularly in the initial lockdown, output was down
UK. We have to appreciate the scale of 30 per cent, but only by about 4.5 per
the shock last year: we witnessed the cent January-to-January, far less than
biggest annual economic contraction the overall economy.
for more than 300 years – GDP down Overall, the future still holds major
about 10 per cent. uncertainties for the different sectors
On the positive side, we’re now in of the economy and we should also
a position where we have effective not overlook the important cross-
vaccines and already more than 67 linkages between sectors.
per cent of the UK adult population The final point I wanted to make
have been vaccinated. The economy is around longer-term growth:
is also far more resilient to lockdowns after all, this conversation is about
and, if government ‘roadmaps’ sustainability. One of the key areas
to re-opening are followed, then where the UK economy has really
expectations are for a really strong struggled in recent years has been
rebound in the coming quarters. business investment.
However, a key point worth Since the EU referendum, UK
highlighting is that this was not a business investment growth has been
typical recession – and nor will the lower than the G7 average.
recovery be typical, either. When we The measures announced
www.insider.co.uk

in the recent UK Budget offer
some optimism that firms may
bring forward some much-
needed spending. Meanwhile, the
Government also appears committed
to investing more to achieve its
climate and digital infrastructure
goals.
A strong bounce-back is in
prospect if business conditions
continue to improve. A key concern,
however, is that, when we look to the
Jeavon Lolay
results of our Lloyds Bank Business
Barometer survey, it shows that
business confidence has been very
variable across the UK.
Notably, Scotland has
underperformed against the UK
average for at least the past two
years. It would be useful to hear your
views on this and what you believe
is required to see confidence and
growth really take off in Scotland.
QThank you, Jeavon. With
the uncertainty of the
external environment, including
continuous Brexit challenges
and the recovery from Covid-19,
how high up on your company’s
agenda is climate change?
Warren Bowden: Some of our
customers refer to sustainability
as defining the new luxury. That is
quite different to what’s gone before.
Due to the disruption taking place
in their sector, and the post-Covid
world, not to mention the change to
electrification, transport in the next
10 years is going to be very different.
What they’re looking at is
durability, traceability, integrity of
www.insider.co.uk
supply chains and they’re wanting
an entirely carbon-neutral supply
chain. Up to two or three years ago,
this wasn’t on the cards, and it’s now
becoming an obligation. This has
been on our agenda for a while. But
I think it’s notching up a little in
urgency in terms of investment and
commitment. As I was told some
while ago, if we aren’t “sustainable”
then we won’t be in business.
We do lead the global leather
Gordon Farmer
GDP has been growing, even during
lockdown, and the prospects are
there for a really strong rebound
Jeavon Lolay
sector in this regard. Covid has had
a massive effect on the ability to
produce – obligatory shutdowns, for
example.
We also now offer an antiviral
leather. Brexit is having a short-term
effect in disruption, with 85 per cent
of our product exported, mostly
through the EU.
So, all sorts of barriers are in play
at the moment. But there’s no doubt,
apart from the cost of the product,
sustainability is the next most
important metric for our customers.
Anne Anderson: The expectation is
that salmon – where the high-risk,
high-reward aspects of agriculture
exist – demonstrates a very strong and
improving level of sustainability in its
production; from sourcing materials
to ensuring we’re not transporting our
problems away from our producing
ROUND TABLE: GREEN INVESTMENT
nations. The environment, balanced
with the social and educational
perspectives, are the challenges going
forward for each sector and it’s a huge
focus within my own.
For us, part of that challenge is
having infrastructure available for
the rural sector. It’s very difficult to
go electric when there are no charge
points.
Martyn Link: In terms of our own
company, we’re discussing it at
Paul Stevenson
board level and the strategy function
provides quite a lot of information
and analysis to the executive
leadership around this subject.
I’m looking at it from a strategic
perspective: where is the world
going? How do we respond? All the
markets are changing, what’s going to
happen?
About 18 months ago I started to
see ESG [environmental, social and
governance] moving to the centre of
the radar of the investor community.
I think in an ideal world many
companies want to be more
sustainable, but the earnings, the
returns, how we make money in this
new world also needs to be in place.
For us, purpose and performance
go hand in hand, purpose without
performance is a dead end.
Paul Stevenson: Our world has
changed massively during the last
five to 10 years. To do what the
regulations say is not enough. We can
build buildings to the minimum, but
that is not enough.
If we want the best buildings in
class, if we want to encourage major
corporates to come to our buildings,
May 2021 INSIDER 65
ROUND TABLE: GREEN INVESTMENT
it’s going to require us to be way better
than what the minimum asks. We
recently completed a 60,000 square
foot office building in the middle of
Edinburgh.
While there are only seven car-
parking spaces, we made them all
electric vehicle compliant. There
are changing facilities, shower, cycle
facilities, heated lockers. There are
bike maintenance facilities and an
over-provision of bike racks. It’s all
aimed at encouraging occupiers to
cycle, to run, to walk to work.
Delivering the minimum the
regulations ask for is way below what
you need to do to encourage the very
best occupiers. Ultimately, there’s got
to be a culture change and an appetite
to do more than we have to.
Gordon Farmer: The investment
mindset and how you create value has
changed, with an increased focus on
ESG. The pace of change in the past
12 months has been far greater than
anybody anticipated in low-carbon
energy and climate change.
The change now, in terms of when
you tender for work and what
customers expect, has significantly
changed. At Global Energy Group,
we have a lot of work to do but we
are committed to deliver on our
responsibilities as a group.
Understanding your carbon
footprint, and the way you operate
as a business is critical. This is
a challenge but important for
developing a sustainable business
with the right culture.
Q What specific measures have
you taken as a business on
sustainability and reducing your
carbon footprint?
Warren Bowden: We started off in
2004 with what we called a zero-waste
strategy, which evolved quickly. We
built our own energy recovery plants,
which is a waste-to-energy operation,
producing renewable energy. But,
beyond that, this topic requires a
much broader commitment towards
the social agenda, as per UNGC
[United Nations Global Compact],
which does change the way you and
your supply chains operate.
Automotive supply chains have to
be carbon-free. So, for us, it means
adopting 100 per cent renewable
energy.
Darren Flynn: We were the first UK
bank to announce clear goals aimed
at reducing the emissions that we
finance by 50 per cent by 2030 on our
path to net zero by 2050 or sooner.
66 INSIDER May 2021
Charles Wordie
Warren Bowden
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ZHUHGXFHWKHHPLVVLRQVWKDWZH
ğQDQFHE\SHUFHQWE\
Darren Flynn
We were also the first UK bank to
achieve sourcing 100 per cent of our
electricity from renewable sources
and have committed to making our
own operations net zero by 2030,
which is an ambitious target.
We are also the only UK bank to
be a Carbon Trust Standard Bearer
for Carbon and Waste reductions
and have reduced our own carbon
emissions by nearly 75 per cent since
2009.
Another thing we’ve committed
to doing is planting more than 10
million trees over the next decade in
partnership with the Woodland Trust.
More recently, we announced an
increase to the expansion of our green
financing initiatives from £3bn to
£5bn, given the fact that we have seen
more requests coming through from
clients in the last 12 months than we
have during the last four years.
Anne Anderson: It’s about setting
targets and driving those targets;
one of the key things for us is tackling
our energy use – our fuel, our
transport.
It’s only been six months since we
published our targets and there is
almost a sense of competition that
starts to develop, with suppliers
seeking to see how many targets they
can tick off a list in terms of what the
next farm in Scotland will look like.
How much carbon reduction can
you get? Can we get to the point
where we are sourcing 100 per cent
renewable energy for businesses like
ours who are at sea?
Martyn Link: There are obvious things
we can do as a business around real
estate such as single-use plastic and
renewable power.
We are also focusing on the
opportunities brought on by smart
and sustainable buildings, as well as
their cost. We have developed our
proprietary SCORE methodology
which can help companies develop a
roadmap around how to reduce their
carbon footprint and ultimately shape
a path towards net zero.
A lot of companies are wrestling
with this challenge and want support.
We’ve spoken to many companies
across different industries including
a big airport in the UK to a beauty
product company.
We have even trialled a ferry in the
Scottish islands using hydrogen as a
fuel. We see this as an opportunity to
further pivot our portfolio over the
next few years.
QIsthenobody saying to you –
environmental agenda
is all very well, but can we cut
the cost?
Paul Stevenson: Are companies
saying to their landlord, their
developer, their investor: We’re happy
to pay an extra 10p per kilowatt hour
for the power to be from a green
source? I haven’t heard that discussion
yet. It will take big corporates like the
banks and others to say that.
There is a cost to that but there is
also an upside, so those conversations
need to be had. What could be
changed is the non-domestic rates
legislation, which I think is so out
of date. You see buildings that could
be refurbished being demolished
www.insider.co.uk

because of the vacant rates liability.
The carbon footprint of demolishing
a building is very high. Companies
should be incentivised to improve
the energy efficiency of buildings
and a better non-domestic rates relief
system can play its part.
Charles Wordie: We operate in the
retail industrial sphere, not office, so
we’re looking at different dynamics.
With respect to clients being prepared
to pay more for a “green” building: in
industrials, they frankly don’t mind.
It’s about location, the ability to
shift their products from A to B. In
terms of the way some legislation is
drafted, particularly Section 63 [to
do with energy action plans], it’s a bit
carrot and stick. The carrot refers to
the tenants not the landlord, so we (as
landlords) can spend as much money
on the building but will not get the
benefits through the rents – it will
be tenants who will benefit through
reduced utility bills.
So that bit of legislation doesn’t
work well. When you start linking
that to planning, it is a minefield. It’s
too time-consuming. Admin and
bureaucracy stands in the way of this.
But, if you could do something
that reduces costs, there’s more of an
incentive to do it. We would like to do
it but it doesn’t stack up economically.
Darren Flynn: Whether companies
would be prepared to pay more to
occupy a ‘green’ building is a good
question.
From the bank’s perspective,
‘Landlord managed’ buildings make
up a relatively small proportion of
the Group’s property footprint, so
our main focus has been around
developing our strategy and plan for
reducing the carbon footprint of the
buildings we have full control over.
Having said that, we have begun
to engage with some of our bigger
landlords on the subject of renewable
electricity, and plan to do more of
this engagement on other areas of
environmental sustainability in the
future. We also now assess various
factors around energy and carbon
performance of a building in our
acquisitions process.
QWhat are the main hurdles
to advancing sustainability
within your business and sector?
Anne Anderson: From my own
sector, there are high investments
and high costs to go down this route,
particularly for a farming sector that
is itself impacted by climate change.
Business confidence to invest in
www.insider.co.uk
ROUND TABLE: GREEN INVESTMENT
Anne Anderson
Martyn Link
We missed a trick with offshore wind.
We can’t do that with these other
industries that are emerging
Martyn Link
this area is around our ability to
grow sustainably, to be able to secure
additional tonnage to enable those
sorts of investments. Secondly, from
the agriculture perspective, it is
around our regulatory environment,
which is incredibly fragmented.
There are multiple regulators in
the space. Where there are multiple
regulators, there is conflict between
them as well as gaps. With the
bureaucracy of the administration,
our ability to get additional tonnage is
challenging.
There is a planning system that
is land-based for us and yet we
work in the sea. So, for the sector,
it’s about ensuring government is
supportive and we have a reform of
the regulatory landscape.
Martyn Link: There are a number of
key questions around new markets. If
you look at the hydrogen and carbon
capture market, the government is
going to have to invest significantly to
create them from scratch and provide
stable, long-term policy direction.
There is definitely a business-
to-business challenge around the
emergence of new industries and I
think a big question for the UK is
where does it want to be globally
competitive.
We missed a trick with offshore
wind. We can’t do that with these
other industries that are emerging. It’s
a big question for government: give us
market clarity around how companies
can make money.
The other big area I would put on
the table is the need for a clearly
defined assessment of what is
sustainable. The EU sustainable
finance taxonomy is a key bit of
guidance that’s been worked through
the European level. That will help
investors understand their portfolio
at a much more granular level around
what these companies are doing and
what is sustainable.
Warren Bowden: There are key areas
for me. Language: the definitions of
some of these metrics. They’re all over
the place.
I’ve had to repeatedly explain each
of these definitions to my colleagues
and it is difficult for me, never mind
others less familiar.
Clear policy requires clear
understanding. Anne mentioned
policy and I must add to that: most
legislation is geared towards energy
use rather than carbon emission.
The climate change agreement, for
example, doesn’t mention carbon. You
can be 100 per cent renewable but still
have a carbon liability. I don’t get that;
someone in policy somewhere must
understand that. I don’t.
Policies need to be joined up.
Some of the hurdles are around
infrastructure. We’ve had to invest,
otherwise we wouldn’t be here.
We invested in our own waste
facility because there wasn’t enough
external capacity to treat it, so it
became the right thing to do.
These costs and green premiums
for renewables are unlikely to be
recoverable from our customers but
we have to secure the business; and
some of these premiums are eye-
watering, very hard to justify in the
boardroom. ■
May 2021 INSIDER 67
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SCOTLAND’S
SCIENCE AND
TECH SECTORS GET A
COVID-19 SHOT IN THE ARM
By PETER WALKER
I
F THERE is any silver lining
to the coronavirus pandemic,
it is surely the speed and
skill with which the science
and technology sector has responded
to the virus.
A rapid acceleration in
collaboration, investment and
focused activity has meant many
countries are now well on their way
to protecting much of the population
using a variety of vaccines. After
a marked decline in public trust
around experts and the scientific
community, the esteem of those
behind the Covid-19 response – if
not necessarily those in charge
– has never been higher.
But how has this translated into the
financial health of Scotland’s science
and technology firms?
Successive lockdowns have
made traditional teamwork and
manufacturing much harder,
while Brexit finally happening has
dried up EU trade and funding
streams, so this review will take
www.insider.co.uk
REVIEW: SCIENCE & TECHNOLOGY
stock of how the industry is faring Centre near Glasgow Airport,
in the “new normal”. which received £13m to research
small molecule pharmaceuticals and
Overdue recognition chemical manufacturing.
The recognition that research and Elsewhere, there was £15m for the
development within these sectors European Marine Energy Centre in
may be crucial to the nation’s Orkney to test a self-contained smart
recovery appears to have hit home energy network, alongside about
with those holding the purse strings. £2m to create the UK’s first remote
low-carbon aviation test centre at
Meeting the needs of manufacturing
Kirkwall Airport.
This followed a £213m
roles will continue to be high demand, Westminster investment in January
to equip universities with what
especially in quality and regulatory they need to drive forward research
that will help the UK respond to
VNLOOVHWVDVSURFHVVHVDUHUHğQHG challenges like the pandemic and
achieving net-zero carbon emissions.
Ian Grant, Eden Scot (below) Private money has also been
spent on growing companies out of
At the start of March, the UK the crisis.
Government invested more In mid-March, life sciences giant
than £117m into 155 Scottish LumiraDx made a £78m investment
projects, across 24 researchers and in its current Scottish operations,
124 businesses. which could see up to 750 jobs
Funding came from the Industrial created over the next three years.
Strategy Challenge Fund and has Supported by a £15m grant
gone towards initiatives like the from Scottish Enterprise, the
Medicines Manufacturing Innovation posts will be located at sites across
May 2021 INSIDER 69
REVIEW: SCIENCE & TECHNOLOGY
Stirling, Inverness and a new facility
Andrew McNeill,
under construction at Eurocentral,
EOS
near Glasgow.
Economy Secretary Fiona Hyslop
MSP said at the time the deal
makes clear that Scotland is an
attractive location for global
investors. “The fact that hundreds of
high-quality research jobs are being
created shows that the company
recognises the skills which exist in
the country’s workforce.”
Alongside LumiraDx’s rapid
antigen test for coronavirus, the
lateral flow tests produced by
Clackmannanshire-based Omega
Diagnostics, were recently
awarded a £374m UK Government
contract – sending the firm’s share Mark Bustard, IBioIC
price even higher.
Another vaccine candidate also Carina Healy,
began commercial manufacture CMS
in Scotland this year, as Valneva
committed to doubling its
Livingston workforce, following
government investment and a
60 million dose order.
On the technology side, new data
from industry growth platform Tech
Nation and job search engine Adzuna
showed that Scottish start-ups raised
a collective £345m in venture capital Ideas come up over a conversation “We see two key gaps – the first is
access to capital, whether that is at
funding last year.
Scotland has the highest number of while making the tea, or in the pub seed level or at Series A and beyond
– the second is with gaining access to
verified start-ups (2,442) outside
of London and the south-east,
after work, at conferences where you commercial experience.”
To help solve the problem, Eos
while the number of venture capital
rounds increased to 96 in 2020
can meet people you wouldn’t so often has developed three funding
streams for early-stage firms, as
Andy Porter, Scottish Biologics Facility
– from 87 in 2019 – despite the well as offering companies access
challenges of the pandemic. to an international network
Tech Nation’s annual industry when serious scale-up investment is of commercially-experienced
report also revealed that Edinburgh required, often beyond what academic individuals to help them build.
attracted £91m in venture capital institutions are capable of. In February, the firm entered into a
investment last year – the fourth- Andrew McNeill, managing strategic partnership with US-based
highest UK city total. Meanwhile, partner at Scottish science and Kineticos Life Sciences to co-invest
Glasgow saw a record increase in tech investment firm Eos Advisory, £10m over the next five years in
venture capital investment, from explains that Scotland needs oncology-focused life sciences
£11m in 2019 to £35m in 2020. to build a broader base of ventures founded in Scotland.
investment and commercialisation Clare Wareing, chief executive
Funding trends experience to maximise the potential and co-founder of drug discovery
While it’s clear that overall funding of its innovations. accelerator Cumulus Oncology,
for science and tech firms in says that, while there is a mature
Scotland is on the rise, drilling down Professor Simon Best, IT sector in Scotland that has
into the data, the picture gets a bit Edinburgh BioQuarter witnessed some large exits, by
more blurred. contrast, the life sciences sector is at
The country has more an earlier point in development.
“world-class” universities per head “We have the key elements of a
of population than any other country successful life sciences ecosystem
in the world except Luxembourg, in place, and we also benefit from
with all of them investing in projects having a productive base in the
that potentially commercialise academic institutes – perhaps what is
promising strands of research. lacking is access to larger investment
But, while the rate of these funds to support scaling.”
“spin-out” companies gaining external Paul Winstanley, chief executive
funding is on the up, problems seem at CENSIS, Scotland’s innovation
to occur further along the lifecycle, centre for sensing, imaging and
70 INSIDER May 2021 www.insider.co.uk
 REVIEW: SCIENCE & TECHNOLOGY
“IBioIC’s Bioprocessing Scale-Up
IN FOCUS: Forensic science Centres are a prime example of that,”
he adds. “We support companies
PROFESSOR Niamh Nic Daéid is the director of the Leverhulme with access to equipment and
Research Centre for Forensic Science at the University of Dundee,
expertise that can give them proof
which was established in 2016 to improve the scientific rigour of
of concept and pilot production data
current forensic techniques.
For instance, fingerprint and bullet matching is still centred to create a business case, and we also
around the comparison of features using imagery, which she says provide support with grants and
makes it “essentially a spot-the-difference exercise” that opens up funding – including our Scale-Up
issues around susceptibility to bias. Accelerator Fund – which can help
DNA analysis is better underpinned by science, but forensic them towards commercialisation.”
scientists still only look at a “tiny bit of DNA” and the process IBioIC’s Innovation Strategy
hasn’t evolved much in the past 30 or so years, while toxicology Group, says that Scotland’s
reporting has problems with its presentation within the courts, established angel investor network
due to mixed profiles. has grown into more venture-scale
“We’re looking at trying to fix all of this,” says Daéid, mentioning funding capabilities.
the implementation of parallel sequencing of DNA innovation, He points to venture capital firm
using nano-bio sensors to detect evidence at crime scenes
Epidarex, which is based in both
at a much more detailed level, as well as digitally-enabled
investigations using augmented and virtual reality technology.
Edinburgh and Bethesda, Maryland,
“We’re bringing together the whole ecosystem – forensic and closed a fund worth more than
academics, detectives, lawyers – to all have a conversation in a £100m just ahead of the pandemic.
safe space about the challenges that are faced. “There are nine University of
“Communication is key, as the biggest challenge is trying Edinburgh spin-outs that have
to enable scientists to articulate the work they do, and the located and grown at BioQuarter
uncertainty, clearly to juries.” since the first commercial labs and
The research centre is an awardee of Tay Cities Regional Deal, offices opened in 2011.
with provision from that creating spin-out Just Tech, which works “Notably of these, RoslinCT has
with the research community to assess their needs, before using recently expanded its footprint into
partnerships and investment to provide awareness for companies the new BioCube building and,
around opportunities for new products and solutions. following a recruitment drive, now
“We’re identifying quick wins, then working with companies
Internet of Things technologies, says has more than 100 staff,” Best adds.
and researchers to make the necessary connections,” Daéid adds.
that, while venture capital firms will In terms of people, Ian Grant,
generally look for a return and exit director and head of the life science
within a few years, scale-ups depend division at recruitment firm Eden
more on patient forms of capital. Scott, says that, despite the crisis, the
On this side of things, the biggest Scottish science and tech sector job
recent development was the launch market is buoyant.
of the Scottish National Investment “Meeting the needs of
Bank in November, with its first manufacturing roles will continue
investment in M Squared Lasers, to be high demand during 2021,
a tech company with links to the especially quality and regulatory
University of Strathclyde. skillsets, as processes are refined and
“There are other positive role streamlined and new products and
models out there, North – formerly solutions come into the market.
Boston Networks – demonstrated “As we become reliant on
that, with the right approach, data, analysts, statisticians and
businesses in Scotland can attract bioinformaticians will be in
private equity funding,” says increasingly short supply,” he
Winstanley. “The key is to have notes, adding that the adoption of
confidence, a clear USP and a “Industry 4.0” processes will also
defined competitive position. require more embedded software
With those ingredients, Scottish engineers to enter the market.
companies can attract funding
from a variety of sources.” Government intervention
Mark Bustard, chief executive As previously mentioned, both
of the Industrial Biotechnology the UK and Scottish governments
Innovation Centre (IBioIC), have responded to the pandemic
points out that scaling up requires with investment and job support
an entirely different skillset initiatives, but challenges remain
compared to early-stage research due to travel restrictions and
and development – and it is also social distancing, as well as the
capital intense. complications of Brexit.
“There is only so much you can Andy Porter, professor of medical
do with pure science – you also biotechnology and director of the
need the capabilities and facilities Scottish Biologics Facility at the
for manufacturing. University of Aberdeen, says that,
www.insider.co.uk May 2021 INSIDER 71
REVIEW: SCIENCE & TECHNOLOGY
while Holyrood’s recent support for
the sector should be praised, more
could have been done to match
Covid-19 vaccine work done in
the “golden triangle” of Oxford,
Cambridge and London.
“There was no Scottish
Government support in terms of
access to patients,” he explains.
“We had phase-three trials, with
drugs ready to go, but it was
companies down south getting
access so, in the end, one Scottish
firm had to go to Singapore.”
As for the UK’s eleventh-hour
transition deal and subsequent
exit from its closest trading bloc,
Porter says it has significantly
slowed things down.
“These types of businesses are
problem solvers, so we’ve found
ways round, but everything just
takes longer and is more expensive.
The levels of paperwork are much
more complex than before, so it’s
like a tariff by the back door.”
Carina Healy, partner at law firm
CMS, agrees that, while financial
pressures are always an ongoing IN FOCUS: Digital Twins
issue across the sector, the current
challenges have been primarily In order to lessen the risk of potentially expensive avenues of Collaboration challenges
regulatory-driven – particularly R&D, business leaders are increasingly turning to “digital twin” The dual restrictions of Brexit
around Covid restrictions and technology. This aims to create living models of factories, supply and Covid-19 have also made the
workplace testing – and legislative, chains or product life-cycles. collaboration that drives so much of
Recent Accenture research found that 65 per cent of executives
with tariffs and other legal changes the innovation in these sectors a lot
expect their organisation’s investment in digital twins to increase
driven by Brexit. over the next three years. In Accenture’s labs in Ireland, the
more difficult. Winstanley
“These are exciting, but also company has begun to use digital twins as a means to analyse says that, during the past year,
uncertain times for the sector, as treatments, test impacts and understand processes. university teams can more clearly
the UK changes its focus from the Barry Heavey, head of life sciences and manufacturing for UK see the importance and impact of
EU to Asia and the US, although it and Ireland at the firm, explained that advances in data storage their work and have greater appetite
remains to be seen whether this will and computational power have driven what is an old concept into for engaging with businesses.
lead to new investment streams and being a global trend. “We’re also seeing a greater
opportunities,” she says. “Essentially it lets you be cynical about things before taking openness to collaboration and
Winstanley notes that an them to the real world. A good example is in aerospace, where working across different disciplines.
emerging trend has been companies planes are designed rigorously on computers before actually “The switch to working remotely
that previously relied on Europe flying, making big cost savings on testing.” has also been a great leveller, with
In Scotland, the oil and gas industry has been using digital
for part of their operations are now people more inclined to work
twins to test fluid dynamics, trying to avoid drilling and extraction
looking at onshoring. collaboratively as a matter of course
failures and maximise efficiency. “It’s harder to do with biological
“While we expect there will be models,” notes Heavey, who added that understanding the through the constant connection
more, much of this will be shaped variables earlier in the process promotes efficiency and safety. they have with Teams, Zoom and
by supply chain concerns and the like.”
dependent on the stage of the Porter argues that, despite
specific projects,” he says. everything, the sector is in pretty
Nik Willoughby, the rude health. However, while online
recently-appointed chief technology tools have been used to overcome
officer at Scottish biotech firm many collaboration problems,
Horizon Proteins, comments: he notes: “Ideas come up over a
“As governments wrestle with the conversation while making the
current challenges, we believe it tea, or in the pub after work, at
is even more important to take conferences where you can meet
a holistic, end-to-end view of people you wouldn’t so often – web
the objectives – and therefore chats lack that spontaneity.
the incentives and penalties – “I think we’re making progress,
governments have to consider when but I worry we’re getting to a point
putting funding and grants into where the generation of new ideas
emerging technologies and sectors.” might be slowing down.” ■
72 INSIDER May 2021 www.insider.co.uk
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HOPE OF NORTHERN LIGHT
SHINING AFTER DARK DAYS
By GRAEME SMITH
D
ESPITE a considerable
amount of depressing
economic news in
Aberdeen and the north-
east in recent times, there is still
optimism that better days lie ahead.
First there was the oil slump of
2014-15, one of the biggest price
declines in modern history and one
that cost an estimated 120,000 UK
jobs, dependent on the industry.
Then Brexit dealt the area a blow
with Warwick University researchers
calculating last summer that the city
was probably the worst hit in the UK.
By early-2020 the mood in the city
was lifting, better days seemed to lie
ahead, but then came Covid.
It has not only dealt a devastating
blow to the oil and gas industry but
also to the city’s retail trade, tourism
and hospitality, which could be vital
for its future prosperity.
John Lewis is one of the latest
casualties, leaving the city devoid of
any department stores.
Russell Borthwick, chief executive
of Aberdeen & Grampian Chamber
of Commerce, is one of those whose
www.insider.co.uk
REGIONAL REVIEW: ABERDEENSHIRE
morale is undented by this series of placed to repeat this now, but we also
body blows. want to ensure we get a larger slice
“Pre-covid we were well on the way of the research and development pie
to creating a city region fit for the too, as much of this work in oil and
21st century that Aberdonians can be gas took place elsewhere.”
proud of and that people Kevin Reynard, PwC’s senior
want to visit. There is still billions partner in Aberdeen, says he is an
being invested across the area, optimistic “glass half full” person and
however we must quickly rebuild agrees there is a great opportunity
momentum behind the wider for a recovery, but adds: “I am not
optimistic it will be automatically
Pre-covid we were well on the landed. It’s going to need plenty of
time, effort and discipline.
way to creating a city region that “We have only had oil and gas
since the 1970s, but it is amazing
Aberdonians can be very proud of how it has become synonymous with
Aberdeen and Aberdeen has become
Russell Borthwick, Aberdeen & Grampian Chamber of Commerce (below) synonymous with oil and gas.
“Aberdeen and the north-east has
regional economic and sector fought back before from the credit
diversification strategies. crunch in 2008 and we had our own
“Being at the heart of the drive to shock in 2014 when the oil price fell
develop and deliver green energy from $140 to $40 – and it felt like
solutions is, perhaps, a bigger and overnight – just as we were reaching
longer-term economic opportunity a better place and there was some
for the north-east than when oil was emphasis on the diverse economy of
discovered in the North Sea. the area.
“The collective expertise, “We have to remember we are
innovation and skills across not just oil and gas and we have to
operators, supply chain, universities capitalise on our natural assets of
and other partners mean we are well great outdoors and fantastic scenery,
May 2021 INSIDER 75
MARKET COMMENTARY
Lindsay McGranaghan
TECHNOLOGY IS THE KEY TO NAVIGATING
WAY THROUGH AN ECONOMIC CROSSROADS
Aberdeen and the north-east must focus its future on digital skills and learning, connected
communities, and transforming services for all citizens
Aberdeen and the north east finds itself at
an economic crossroads. Key sectors have
absorbed huge damage due to COVID-19. Now
is the opportunity to reassess and build for the
future.
The Aberdeen Economic Policy Panel has already
focused its mind on a “clear route-map for change”.
The region, it insists, needs to “reimagine itself as
a place to live, work, invest and do business and
in doing so, build much greater resilience into the
local economy”.
The north-east must strengthen its technology
ecosystem “to support the establishment of new
businesses and improve the digital infrastructure”.
Also of vital importance is an updated skills
strategy, principally for young people, that “takes
account of the existing skills gaps”.
If Aberdeen is to embrace a digital future, it must
focus on digital skills and learning, connected
communities and transforming services for all
citizens.
These are the threads of a new digital fabric
that can change the way communities in the
north-east live and interact with local authorities,
schools, and each other. Together they can provide
a strategy for recovery against a backdrop of fiscal
challenges caused by the pandemic, and create
Lindsay McGranaghan is CGI Vice President and Scotland Business Unit Lead
Find out how CGI can help your business and learn more at cgi.com
a talented digital workforce capable of delivering
them.
Central to all are universality of access and
equality of attainment in education. CGI has
created a unique digital solution to transform
learning and teaching in schools called
Empowered Learning. It offers every student
the same access to the same great digital tools
for learning, while supporting digital learning
and teach strategy. Empowered Learning allows
educators, learners and parents to take advantage
of digital technology opportunities.
In Glasgow, this programme – known as
Connected Learning – is one of the largest single
city implementations in Europe, and fits with CGI’s
core commitment to communities, partnerships
and STEM, providing young people with a passion
for technology and hunger to learn. A deal with
Edinburgh was signed just last month, and will see
the deployment of 39,000 IPads to 36,000 pupils
and 3,000 teachers in more than 120 Schools.
In the Scottish Borders, known as Inspire
Learning, all pupils from P4 to S6 in every Borders
school has access to their own device, providing
an ideal blended learning environment during
the COVID-19 pandemic with more than 90%
engagement.
Another driver of digital excellence
is apprenticeships. CGI has a Graduate
Apprenticeships Programme in partnership with
Glasgow Caledonian University and Edinburgh
Napier University.
Currently, there are 13 graduate apprentices in
Scotland studying towards a BSC Honours – in
Software Development at Glasgow Caledonian
and IT Management for Business at Napier – while
also developing their career working on real-life
projects at CGI, with a paid starting salary of
£19,000. These apprentices are not only the key to
the future of our business, but also the tech sector
in Scotland.
With a skilled workforce in place, cities and
authorities can then drive forward real digital
change for their communities, and fulfil ‘smart city’
ambitions.
From schools to social care, health and
wellbeing, finance, proactive maintenance,
recycling, route optimisation, and smart vehicles,
life will be different, better, and technologically-
driven, with citizens at its heart.
What is more, this new technology will mean
a virtual world that delivers benefits back to
authorities in the north-east, and create the right
environment for a new, digital economic recovery.

so quality tourism is important to us.
We have some world-class venues
outdoors, including golf courses, and
we have built some fantastic facilities
including Aberdeen Sports Village
and the P&J Live event complex.
Our agriculture, food and fish are
quality and remunerative and we do
quite well in the biotech business and
education as well, so we have a broad
base to build from.
Reynard adds: “Things like the
BioHub, the North Sea Transition
Deal and the Aberdeen City Region
and Deal must be used properly and
shouldn’t just be headlines. We need
local institutions, local businesses and
inbounds to all work together to help
leverage each of these areas.”
He said he believes energy
transition creates a fantastic
opportunity for Aberdeen and that the
industry is embracing it in terms of its
own emissions and sustainability.
“But oil and gas isn’t going to
disappear for a few decades yet.
Three-quarters of UK energy
consumption is based in oil and gas,
so it has to be about what role oil
and gas can play in terms of its own
emissions, its own consumption and
producing oil and gas in a clean way.
“Also, other aspects of energy
transition might well only happen
with the balance sheets, the
innovation and skill of the people
that are in oil and gas. Carbon
capture and storage and hydrogen,
for example – a lot of that is about
transferable skills and transferable
assets, so I think oil and gas has to be
part of the solution.
“I feel the sector has a job to do
to make itself attractive, but energy
transition can only help that. It
provides the opportunity to create
some impetus around ‘yes we are
an attractive industry and you can
have a great career here and you c
an be at the hub of energy transition’,
says Reynard.”
Stuart McIntyre, head of research
at the Fraser of Allander Institute,
has regularly highlighted the gravity
of the situation in the north-east.
“I can’t say this often enough, or
loudly enough: there is a real jobs
crisis in the north-east,” he says.
“Payroll (PAYE) employment in
the north-east of Scotland is down
12,500 on a year ago (-5.5 per cent),
and 21,5000 (minus nine per cent) on
five years ago. While these data from
HMRC are new and at this stage
‘experimental’, it’s pretty clear they
reflect the reality on the ground.
www.insider.co.uk
REGIONAL REVIEW: ABERDEENSHIRE
peripheral location has made it
difficult to diversify its economy and
it’s often ‘far-removed’ from policy
priorities in the central belt.
“Looking to the energy transition
and commitments to net zero, what
gives the north-east its comparative
advantage, if it is capitalised on, is
its existing expertise and skilled
workforce in the energy sector.
Jobs in the oil and gas sector are
disproportionately highly skilled
and well-paid – and retaining these
Lyndsey skilled workers in the region is going
McGranaghan, to be key.
CGI “It’s great that the UK Government
brought forward some new initiatives
in the Budget to support the sector,
Adrian Watson,
Aberdeen Inspired
and in turn this should act as a boost
for the broader north-east economy
but, as always, the devil is in the detail
and I have some scepticism about the
size of the impact these initiatives will
have until I see the detail.
“But the economy needs to
diversify too. This is where the efforts
of bodies such as Opportunity North
East and the city council are crucial
to helping open up new opportunities
for the region in tourism, life sciences
and food and drink.
“Investment in things like BioHub,
Seedpod (food and drink) and the
Hydrogen Hub will inevitably create
Through organic growth and some additional employment in the
wider economy, but the ultimate scale
DFTXLVLWLRQVZHłYHGLYHUVLğHGRXU of the impact of these initiatives is
difficult to gauge at this stage.”
offering across other industry sectors, Companies like Inoapps
demonstrate how a global business
building a strong global presence can be built from the granite city.
It was founded in Aberdeen by
Phil Burgess, Inoapps (below) Andy Bird in 2006 when he spotted
a gap in the market for high-quality
“Often when people think about Oracle IT service provision within
the oil and gas sector they think the energy sector. It retains its
about jobs offshore – but there is a headquarters in Aberdeen but is
huge amount of onshore employment now an international company
too, and not just in businesses in the with offices in Asia and the US,
supply chain of the oil and gas sector, where Bird is based as global chief
but also the employment that those executive officer.
working in the sector support in the The company’s EMEA managing
wider economy. director, Phil Burgess, says: “Inoapps is
“If you have a robust oil and gas a great example of an Aberdeen-based
sector you have those supply chain business that has leveraged its initial
jobs, and with both of those you get expertise in supporting UK-based
the hospitality and retail jobs that oil and gas clients to a wider global
come with a robust economy. marketplace. Through organic growth
“Geography has a key role and acquisitions, we’ve diversified our
in explaining the economic offering across other industry sectors,
development of the north-east over building a strong global presence,
the past 50 years – positioned as and we’re now preparing for further
it was to capture the wider supply significant growth, particularly in the
chain benefits of oil and gas US and Asia.
developments in the North Sea. “While we now have a strong
At the same time, its relatively global focus to our business, we
May 2021 INSIDER 77
REGIONAL REVIEW: ABERDEENSHIRE
also remain committed to its
Aberdeen roots.
“Cloud migration and other
innovative technological solutions
will be an important driver in helping
Aberdeen businesses as the city’s
economy continues its transition
towards new and diverse industry
sectors. Our focus on utilising
Oracle’s technology and applications
to maximise operational excellence
has a key role to play in supporting
the competitiveness and growth
potential of companies here, whether
they are targeting Scottish and UK
markets or have global aspirations.”
Global IT and business
consulting services company
CGI believes Aberdeen and the
north-east must invest in a young,
skilled workforce to establish its
technological credentials.
CGI, which employs more than
500 people throughout Scotland,
including Aberdeen, is committed
to providing young people with a
passion for technology and hunger to
learn through STEM.
Lindsay McGranaghan, CGI
vice-president and Scottish business
unit lead, says: “Developing a skilled
tech workforce begins in education.
CGI has created Empowered
Learning, a world-class digital
education programme that builds
digital schools and classrooms for
educators and pupils.
“Through it, educators can create
and tailor lessons to personalise
learning, access new ways of
bringing learning to life. This gives
pupils access to world-leading
digital resources and provides
first-hand experience of how the
world of digital can impact positively
on our lives.
“CGI would stand ready to help
the north-east establish a new
generation of young tech graduates
to help build on Scotland’s reputation
for digital excellence.”
Tourism is an increasingly
important sector for the area and,
according to Chris Foy, CEO of
VisitAberdeenshire, it is in a
desperate state. “As we scan the spring
skies for silver linings, it is apparent
that the tourism sector in the
north-east could be well positioned
to benefit from pent-up demand to
travel,” he says.
“Customer insight suggests a
desire to explore wide open spaces
and majestic landscapes. With that
in mind, the offering in Aberdeen
and Aberdeenshire is undoubtedly
78 INSIDER May 2021
Aerial view of Aberdeen with the River Dee
and Duthie Park
As we scan the spring skies for silver
linings, it is apparent that the tourism
sector in the north-east could be well
SRVLWLRQHGWREHQHğWIURPSHQWXS
demand to travel Chris Foy, VisitAberdeen (above)
strong, so long as restrictions allow
the market to get to our products.
Pre-pandemic, direct tourism
expenditure in the north-east
contributed more than £730m to the
local economy every year, supporting
almost 18,500 jobs across nearly
1,400 businesses.
“To get heads back on beds in
the short term, our promotional
campaigns present a viable alternative
to well-trodden paths elsewhere on
these islands. Looking further ahead,
a ‘Team Aberdeen’ approach is being
taken to secure a rolling pipeline
of high-yield business events for
the city, and work with the travel
industry should mean more tour
operators featuring more north-east
experiences in their programmes in
the future.
Crucial for the success of tourism
is a vibrant city centre and for
the Aberdeen Inspired Business
Improvement District (BID)
helping businesses recover from the
devastating impact of the Covid-19
restrictions is a top priority.
“The businesses and organisations
that make up the diversity, vibrancy
and appeal of our city centre have
faced an unprecedented crisis,”
says chief executive Adrian Watson.
“We have already seen the loss
of our branches of major stores
such as John Lewis and Debenhams
alongside independent hospitality
venues that have been part of our
fabric for decades.
“One of our core priorities for
the next five years, set out in our
new business plan, is helping
businesses to recover from Covid,
including regular business network
meetings to provide specific help
and advice and a commitment to
lobbying for support for the city-
centre business recovery.
“We are committed to working
with Aberdeen City Council and
other stakeholders, on behalf of more
than 800 levy payers, to help our city
centre recover and reinvent itself as
a thriving and dynamic destination,
fit for the post-Covid world, which
attracts visitors and allows businesses
to flourish once more.”
As businesses move towards a
recovery, many will have their eye
on evolving their sustainability,
according to Fraser Sime, regional
director of the Bank of Scotland.
“Our latest Sustainability
Barometer found that two-thirds
(68 per cent) of Scottish SMEs
have worked to become more
environmentally sustainable in the
past year and more than half (56
per cent) of Scottish SMEs believe
becoming more environmentally
sustainable is important to their
business,” he said.
“This is an encouraging sign
and, at Bank of Scotland, we offer a
range of support such as our Clean
Stuart McIntyre, Growth Financing Initiative (CGFI)
Fraser of Allander to help with sustainable ventures and
Institute (Below) operations. It allows firms to access
discounted lending to invest in green
and low-carbon projects such as the
installation of solar panels.
“Small changes can also make a big
impact and SMEs in the region could
also consider switching to renewable
energy tariffs and reducing waste –
small changes that will improve their
environmental footprint.” ■
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INSIDER INTERNATIONAL: INDIA
TUNING INTO
THE PROMISE
OF GROWING
RICHES IN INDIA
By PERRY GOURLEY
F
OR MANY of India’s
1.4 billion residents, one
consequence of social
distancing measures in
particular will have affected their
quality of life.
In what is a movie-obsessed
country, the closure of many of its
8,000 cinemas has had a significant
impact on the country’s most popular
social pastime.
The restrictions have led to a rapid
acceleration of what was already a
growing trend for India’s wealthier
citizens to invest in home cinema
systems, a reflection of the dramatic
rise in middle-class consumers seen
there in recent years.
According to Anji Sosa, managing
director of Scottish hi-fi firm Fyne
Audio, that trend should lead to
increased demand for his firm’s
speakers in what he sees as a market
with significant long-term potential.
“India has been something of a
slow burner for the audio industry
and it has been behind the growth
seen in other markets, but it is now
starting to catch up quickly,” he says.
The rise in consumer spending
predicted for India in the years ahead
makes it a market where high-end
brands such as Fyne Audio are keen
to establish a presence.
India is on track to soon be the
largest country by population
and have the third-largest economy,
with a four-fold growth in
consumer spending predicted
by 2030. By then, as many as
four out of five households are
expected to be “middle-class” with
disposable income to spend, up from
about 50 per cent today.
Although India is currently a
relatively small trading partner
for Scotland, it is becoming
increasingly important.
80 INSIDER May 2021
Scottish exports of goods and
services – excluding oil and gas –
to the country were estimated to
be worth £295m for the latest 12
months that figures are available for,
up by more than a quarter from the
previous year.
The value of exports to India has
increased by two-thirds in the past
five years – with food and drink
accounting for almost half the total
– making it Scotland’s 25th-largest
export destination.
Although Covid has taken
an inevitable toll on the Indian
economy, the International Monetary
Fund recently said it was now on
the path to gradual recovery, with
GDP growth recently returning to
positive territory with forecasters
expecting the nation’s growth to hit
11 per cent next year.
As the UK looks to build new
trading partnerships in the wake
In energy, British experience and
technology can be used to help
meet India’s growth challenges
Chris Horsley, Burness Paull (below)
of Brexit, the long-term growth
prospects mean India is seen as a key
target market.
The UK’s International Trade
Secretary Liz Truss MP recently held
talks with the Indian government to
discuss proposals for an Enhanced
Trade Partnership between the
two countries, ahead of a more
fully-fledged India-UK free trade
agreement (FTA).
Chris Horsley, the Edinburgh-
based head of Burness Paull’s India
desk, says there is a “huge post-Brexit
focus” being put on the UK-India
relationship, with both Westminster
and Holyrood seeing it as a key
dest
destination
d estin
inati
tion to
to boost
b the future
Above: High-end balance of trade.
speakers produced
He says there are a number of
by Scottish firm
Fyne Audio
key sectors where Scottish and UK
expertise are in demand.
“In energy, for example, there
is great scope for collaboration as
British experience and technology
can be used to help meet India’s
growth challenges,” says Horsley.
Indian Prime Minister Narendra
Modi wants to see the country
become a global leader in renewables,
recently increasing its target for
generation capacity to 220GW by
2022, up from 175GW.
A number of Scottish energy
firms are already playing an active
role in India’s low-carbon transition,
including Glasgow’s Smarter Grid
Solutions which is working on a
contract to help manage renewable
resources in the southern state of
Tamil Nadu.
IN
I FOCUS: India
UK-wide trade with India is worth
some £23bn a year and supports
about half a million jobs in each
other’s economies.
India is now the UK’s sixth-largest
non-EU trading partner after the US,
China, Japan, Switzerland and Norway.
The UK is also one of the largest
investors in India, with £22bn of direct
investment into the country over the
past two decades.
www.insider.co.uk
 Although its rising prosperity
means India merits a place on the
radar of other Scottish exporters,
it remains a challenging market to
break into.
Home to almost a fifth of the
world’s population, the scale of the
country is daunting. Its eight largest
cities each have a population bigger
than Scotland, with three – Mumbai,
Delhi and Kolkata – having more
than 10 million inhabitants.
It also has a staggering 380
different languages, although
125 million people class English
as their first language.
For Fyne Audio, that scale means
attempting to build a direct presence
there to sell its products was not a
viable option.
“India is such a vast country and
developing your own entity with
your own direct sales team on the
ground would be a very significant
investment for a company like ours,”
says Sosa, whose North Lanarkshire
firm exports to about 60 countries.
The nature of Fyne Audio’s
products also means trying to sell
online in India is not feasible.
“People want to see and hear
high-end audio products and you
www.insider.co.uk
need physical dealers to be able to do
that and to persuade people to buy,”
explains Sosa.
Instead, Fyne has appointed a
Mumbai-based distributor that
has a significant presence in the
audio market across key parts of
the country.
Although it remains a small market
for Sosa, he believes the work being
put in now to build the company’s
name there will pay dividends in the
years ahead.
“The Indian audio market is a bit
like the UK was 10 or 15 years ago.
We had a huge explosion in home
theatre set-ups back then, and India
is about to go through that now,”
he says. “Obviously, a lot of Indian
people don’t get paid much, so
budget products are still a very big
part of the market and our products
don’t really address that end. But the
high-end segment is growing and
in the next 10 years I think it will
really take off there and we are ready
for that happening.”
Those looking at doing business
in India need to be prepared for
the practicalities of trading with a
country renowned for its high levels
of bureaucracy, although significant
Above: Bandra- strides have been made in reducing
Worli Sea Link, red tape in recent years.
connecting island
The World Bank’s latest Ease of
and suburbs
of Mumbai
Doing Business rankings saw the
country jump 14 places to 63rd out
of 190, and the Indian Government
has set a goal of reaching the top 50
in the near future with aspirations to
hit the top 25 in the longer term.
Although progress is being
made, Burness Paull’s Horsley, who
has been working with Scottish
Development International to help
firms looking to enter the Indian
market, says hurdles still remain.
“Bridging the gap between intent
and implementation has always been
a challenge for Indian governments,”
says Horsley, who says firms need to
be aware of factors such as disparities
between state governments which
the federal structure leads to.
Businesses also need to be
conscious that “politics can still often
trump economics” and that India is
almost always in election mode, with
one or two states going to the polls
each month.
“This means that political leaders
are compelled to navigate challenges
of politics and economics on an
almost continual basis,” he says. ■
May 2021 INSIDER 81
TECH TALK: RECRUITMENT
PANDEMIC HAS HEIGHTENED
COMPETITION FOR TALENT
By MICHAEL FEELEY
W
HEN the pandemic
first forced Scotland
into lockdown in
March 2020, the
impact on the IT and digital skills
market was immediate and brutal,
with practically all recruitment
activity abandoned or postponed
indefinitely. In the months that
followed, however, the mass adoption
of flexible working, combined with
many organisations accelerating
their digital transformation plans,
created huge demand once again for
already-scarce digital talent.
David Mains, head of technology
at Tec-Source, a Glasgow-based
tech recruitment agency for SMEs,
recalls that, immediately prior to
the initial lockdown, the Scottish IT
recruitment market was healthier
than ever. He says: “As we entered
2020, we were exceptionally busy.
There was a tremendous demand
for technical and digital talent in
Scotland, particularly for software
82 INSIDER May 2021
developers. I hired two new staff a The latest UK Tech Talent Tracker
fortnight before the first lockdown.” report from Accenture revealed the
Nick Price, CEO of Edinburgh- number of technology job listings
based tech talent agency Bright in the UK declined by 57 per cent
Purple, agrees: “The market was during the past year, with fewer than
buoyant. There was so much 55,000 open roles advertised. Despite
going on: transformation this, the research found demand for
programmes, change projects, skills in cutting-edge technologies
Artificial Intelligence, Internet of such as AI and Quantum Computing
Things, major data projects. was seeing a resurgence in Edinburgh
and Glasgow.
March came and it was like having Mark Byrne, head of Applied
Intelligence for Accenture Scotland,
your legs cut from underneath you. says: “The figures for AI and
Quantum Computing indicate that
All recruitment halted overnight Edinburgh and Glasgow remain hubs
for data science and innovation in
Nick Price, Bright Purple (below)
these fields. The pandemic rapidly
accelerated digital transformation and
Then March came and it was taught us we must all master change.”
like having your legs cut from
underneath you. All recruitment The remote revolution
halted pretty much overnight. I’ve According to Chris Lowden, director
lived through three recessions; the of digital & technology at Glasgow-
difference with this crisis was the based recruiter Nine Twenty, the
unpredictability. No-one knew Scottish IT jobs market began to
how long it would last or what the recover in Q3 of last year and then
financial hit would be.” accelerate rapidly. He says: “By the
www.insider.co.uk

autumn, we started to see a rapid
uplift in the number of IT vacancies
being advertised, with the vast bulk
of jobs being related to software
development. Whatever the industry,
be it retail, financial services, logistics,
every business needs software talent
to help it adapt to the new reality.
“Q4 2020 was broadly on a par
with the previous year and now, with
Q1 2021, we’ve just had our strongest
quarter ever. We were lucky in that
several of our clients, such as games
developers and pharmacists, grew
significantly during the lockdown.
“We found that SMEs, including
our own business, benefited from
being able to make the transition to
remote working more swiftly and
smoothly than larger organisations.
I think the recruitment market will
be dealing with the impacts of that
shift for years to come.”
Mains at Tec-Source points
to a number of his SME client
companies being able to grow more
rapidly during lockdown thanks to
remote working: “When you are a
growing business, more office space
to accommodate more employees
generally means more overheads, so
we’ve seen the money saved on office
expansion diverted towards tech staff
salaries. We’ve seen salaries increase
by about 20 per cent for developers
and by 10 per cent for business
support functions like business
analysts and account managers.
“However, a knock-on effect of
the mass shift to remote working is
that a whole generation of graduates
and re-skillers are being squeezed
out of the marketplace. Companies
are less willing to take a chance on
someone inexperienced because they
are probably going to work remotely.
As a result, clients are often excluding
the least qualified candidates first in
the selection process.”
Price at Bright Purple believes the
broad success of remote working
means employers seeking digital
talent will have to offer flexible
working as a matter of course beyond
the pandemic: “We’ve entered a
new era of work, with a new set of
expectations from candidates,” he
says. “Lots of people don’t want to
return to a ‘five-days-a-week in the
office’ arrangement.
“Young people with in-demand
digital skills are not going to join
a company unless it shows some
imagination around flexible working.
www.insider.co.uk
A knock-on effect is a whole
generation of graduates and re-
skillers are being squeezed out of the
marketplace
David Mains, Tech-Source (below)
HR people are going to rethink
some of their practices to make
their organisations attractive to
those candidates.
“Another point to consider is
that the market for IT talent is now
truly global in a way that it wasn’t
before the crisis. Scottish companies
are increasingly comfortable with
recruiting digital skills from all
over the UK and beyond, but
it’s a double-edged sword. Scottish
talent is also being recruited by
overseas firms in larger numbers,
making the competition for skills
fiercer than ever.”
The battle for digital skills
All of the recruitment specialists
TECH TALK: RECRUITMENT
agree that a shortage of digital skills
is the biggest threat to the future
of Scotland’s tech sector and the
industries it serves.
Mains says: “Even before
the pandemic, we had a well-
documented digital skills shortage
in Scotland, with thousands of
technology vacancies not being
filled every year. We had already
started to see a candidate shortage
as a result of Brexit.
“In recent years, the Scottish
tech sector has benefited from a
steady flow of skilled migrants
arriving from places like Spain,
France, Greece and Germany. I’d
estimate that, since Brexit, those
migrant numbers have fallen by at
least 50 per cent.”
In addition, recent research from
the Learning & Work Institute has
revealed that the number of young
people taking IT subjects at GCSE
has dropped 40 per cent since 2015.
Fewer than half of British employers
believe young people are leaving
full-time education with sufficiently
advanced digital skills, while 76 per
cent of firms think a lack of digital
skills would hit their profitability.
Lowden says: “The drop in
Scottish students choosing
STEM-related subjects at college
and university is going to represent
a major challenge for the country
unless we take action now.
We need to be engaging kids, with
an emphasis on girls, at primary
school level and educating them
on the breadth of opportunities
available within the digital industry
and how digital skills underpin so
many aspects of their lives.
“Government and the business
community need to work
together to tackle the digital skills
shortage or Scotland is at risk of
being left behind.”
Price believes it would be a
mistake for Scotland to believe
its own hype in relation to the
digital marketplace.
He says: “We hear a lot about
Scotland’s strength in fintech,
for example, but the reality is
that Lithuania, a country of two
million people, has a bigger fintech
industry than we do. Every country
in the world needs digital talent
just as much as Scotland. If we
underestimate others, and don’t
take steps to stay competitive, we’ll
be the ones to lose out.” ■
May 2021 INSIDER 83

Construction lays foundations
to build a far greener future
By FRANCIS SHENNAN
T
HE BUILT environment
contributes about 40 per
cent of the UK’s total carbon
footprint, according to the
UK Green Building Council. Almost
half of this is from energy used in
buildings and infrastructure such as
roads and railways.
New buildings are more energy
efficient, but 80 per cent of the
buildings that will still be in use in
2050 have already been built. Yet, in
only six months, the 26th UN Climate
Change Conference of the Parties in
Glasgow will bring together heads of
state, climate experts and campaigners
to try to agree on co-ordinated action.
“In November the spotlight will be
on Scotland as we host the COP26
conference and it presents us with a
real opportunity to showcase some
of the positive steps we are taking,”
says Stephen Good, chief executive
of Construction Scotland Innovation
Centre (CSIC).
“It is important we think of COP26
as a launchpad for discussions and
action around sustainability rather
than an end-point. We already have
www.insider.co.uk
some of the foundations in place,
including regulations, a strategy for
decarbonisation and greater use of
renewables across the industry. But
there is more to be done in terms of
setting targets, tracking progress and
measuring outcomes.
“One of the major challenges is the
fact the construction industry can be
It is important that we think of
COP26 as a launchpad for discussions
around sustainability, rather than an
end-point. We already have some of the
foundations in place
quite fragmented. Therefore, strong
leadership is essential for driving
change through every link in the
supply chain.”
Transforming the supply chain
will be essential to building
sustainable property, focusing on the
materials used, the digital tools and
manufacturing techniques.
“There ought to be a focus on
PROPERTY SPECIAL: COP26
Above: Rowallan in association with
Castle in East
Ayrshire, where 79
environmentally
friendly homes
will be built on the
600-acre estate
the natural materials we already
have at our fingertips to produce
buildings that are made in Scotland,
from Scotland,” says Good. “CSIC
is currently supporting industry to
explore the greater use of homegrown
timber, for instance.”
Environmental, social and
corporate governance (ESG) and
wellness are now the most prevalent
themes among occupiers, landlords
and developers, according to Toby
Stephen Good, CSIC (below)
Withall, office agency partner at
Knight Frank Edinburgh, and the
pace of change has “been incredible to
witness”, he says.
“Going back to the basics of how
a building is put together can help to
identify areas that can be improved,
such as the way air flows. Air
conditioning is a big focus, with new
systems beginning to come to the
market powered by electricity, rather
than gas. Developers are also looking
at how systems can maximise the
rsmuk.com
May 2021 INSIDER 85
PROPERTY SPECIAL: COP26

benefits of natural airflow. We are

also seeing developers move towards HFD’s 14-storey office
development at 177
renewable energy, with most new
Bothwell Street, Glasgow
buildings coming on to the market as
fully electric. Green initiatives are also
being included in the design stages,
such as photo-voltaic panels and
rainwater harvesting to encourage the
use of renewables.
“In existing buildings, in particular,
decarbonisation is yet to be delivered.
However, there is an initial investment
to consider and occupiers looking for
sustainable spaces will be expected to
pay a premium to reflect that, until it
becomes more mainstream.”
The topping out of one building in
April shows what can be achieved.
The FORE Partnership’s Cadworks in
Glasgow City Centre is 95,000 sq ft of
speculative office development over
10 storeys, which will complete in
time for COP26. It will be one of the
first office buildings in the city to be
net-zero carbon in operation.
It uses no fossil fuel in its operation
and is all-electric. It is the first
commercial building in Scotland to
use Airlite, a 100 per cent natural paint
technology to neutralise greenhouse
gases and kill viruses.
Four months earlier Edinburgh
Park’s flagship office building at
1 New Park Square was topped out. Going back to the basics of how a project’s success. If it doesn’t
have meaningful sustainability
The Edinburgh Park Southern Phase
masterplan is one of Scotland’s biggest building is put together can help to credentials, the building will not
even be in the race.
all-electric mixed-use property
developments, emphasising reduced
identify areas that can be improved, “There is, however, an important
distinction to make between new
waste and carbon footprint with
increased energy efficiency.
VXFKDVWKHZD\DLUĠRZV and existing buildings. While
39 per cent of global emissions
It is designed to maximise the use
of clean energy to power more than
Air conditioning is a big focus come from the built environment,
analysis suggests 80 per cent of the
Toby Withall, Knight Frank Edinburgh, (below)
845,000 square metres of workspace, buildings that will exist in 2050
including a commercial hub and have already been built. That first
public square at Edinburgh Park Edinburgh Park with heat and statistic is heavily skewed towards
railway station, a 170-bedroom hot water from a zero-carbon existing stock, which tend to be the
apartment hotel and 1,740 homes. all-electric system based on the latest worst-performing assets.
Tony Hordon, managing director air source heat pump technology. “The real challenge will be
of Parabola, says the company The decentralised system increases around the existing estate and
pulled the plug on gas across its efficiencies, reduces customer costs how that can be improved from a
developments many years ago. “In and improves resilience.” sustainability point of view.”
creating an all-electric development The pandemic was a watershed for This adds another level of
at Edinburgh Park, we have followed property in relation to ESG concerns, complication. Can existing
best practice in maximising energy says Stephen Lewis, managing buildings be adapted or have their
efficiency,” he says. “With operational director of HFD Property Group. sustainable credentials improved,
energy requirements minimised, “Before Covid-19, if a development or would it make more sense to
we have then developed designs for didn’t embrace sustainability, broadly start from scratch? However, if
a low-carbon, decentralised energy speaking it had limited impact on its starting from scratch – there is the
centre and district heating network. success,” he says. “Now, sustainability environmental cost of removing the
“This will supply all homes in will fundamentally determine a existing structure.

rsmuk.com
86 INSIDER May 2021 www.insider.co.uk

“While there is a clamour to look at how
these buildings might be refurbished, it is not
always the panacea,” says Lewis. “Installing
new external fabric and mechanical and
electrical systems equates to more or less
the full building. And, if you consider the
site itself is a finite resource and the existing
building may not deliver its full potential
– or as much as it could – then a new
development may well make sense.”
Heating alone accounts for 10 per cent
of the UK’s carbon footprint and homes
are more significant than all other types of
building combined, according to the Green
Building Council.
In East Ayrshire the first phase of
an environmentally friendly housing
development has been launched in a £60m
joint venture between Cherish Homes and
the 600-acre Rowallan Castle Estate, with
serviced plots for 79 custom-designed homes
costing from £400,000 to more than £1m.
Cherish Homes uses innovative off-site
modular construction and its homes are
typically triple-glazed, highly insulated and
use mechanical ventilation and heat-recovery
systems, achieving up to a ‘B’ energy rating.
“The UK has fallen behind other
countries, such as Sweden, Germany and
Japan, which have adopted custom-built
homes, advanced off-site manufacturing
and modular construction techniques much
more readily,” says chief executive Stuart
Law. “We are seeing long-term changes in
consumer behaviour, with more people than
ever looking to the countryside for their
next home. We are already seeing significant
demand for the plots at Rowallan.”
Changes in construction technology and
methods raise the issue of whether or not
the UK, and Scotland in particular, has the
skills to cope with new demands placed on
it. Just as the pandemic was a watershed in
relation to ESG for Lewis at HFD, so it has
accelerated the adoption of technology.
“Proptech had been discussed for years
prior to the pandemic, without any major
changes – but the sector is getting better
and the pandemic has, again, accelerated
that,” says Lewis. “Now, almost everything in
property is related to IT. We saw the interplay
between property and technology coming
and that’s why we set up our IT business
20 years ago – augmented latterly with our
DataVita data centre business. Technology is
integral to what we do.
“But having the most efficient pieces of
kit is only half the battle – they need to be
used properly. Either you need appropriately
trained people to use the technology or have
to automate it through the use of sensors,
machine learning and artificial intelligence.
We are introducing a range of technologies at
177 Bothwell Street (in Glasgow) to minimise
people’s need to physically interact with
www.insider.co.uk
PROPERTY SPECIAL: COP26
the building and make it significantly more
efficient to operate.”
As an indicator of digital maturity and
adoption, McKinsey Global Institute’s digital
index ranked the construction sector second
from bottom and real estate towards the
middle of the pack. “Even so, its scores were
low,” says Douglas Morrison, director of
operations and future skills at CSIC.
He adds: “Our industry and education and
skills systems have traditionally been focused
on specific disciplinary skillsets and have
been too slow to respond to the development
of digital capabilities. We need a programme
of digital upskilling to bring people in the
industry to a basic level of digital maturity.
“We also need to be more targeted with
our integration of technologies and processes
within the skills systems to arm people
with the competencies to move from being
consumers of technology towards being
creators. That would mean more individuals
and organisations feeling empowered to
create content, assets and resources in digital
We are seeing long-term
changes in consumer
behaviour, with more
people than ever looking
to the countryside for their
next home Stuart Law, Cherish Homes
formats that can help address challenges,
for instance, around environmental
performance or skills development.
“Part of that process will be re-thinking
how we engage with digital adoption. It has
to be developed at as early a stage of life
as possible and then recognised as part of
lifelong learning.”
CSIC has helped more than 1,000
businesses to up-skill with the adoption of
building information modelling (BIM). Its
Offsite Ready initiative has worked with more
than 1,500 individuals to drive low-carbon
construction methods and its Passivhaus
programme will train 600 workers in
methods for ensuring thermal comfort using
very little energy for heating and cooling.
Morrison pointed to “the new occupations
and tasks that will emerge as we develop
what a net-zero built environment will
look like. This will inevitably see the greater
integration of new technologies and systems
but, at present, we haven’t optimised the
process of mainstreaming emerging practice
efficiently and effectively into the education
system. This is a challenge that will need to
be addressed”. ■
COMMENT
Claire Monaghan
Head of Real Estate and
Construction Scotland
RSM
E: claire.monaghan
@rsmuk.com
W: www.rsmuk.com
The tumultuous year that
shifted the foundation of the
property industry
RSM’s Real Estate 360 report highlights how the global
pandemic and Brexit have presented economic and
geopolitical conditions that will fundamentally change the
real estate sector.
Our 2021 survey of 300 senior industry experts suggests
both are disrupting the traditional order of asset classes, as
seen with the rise of data centres likely due to an accelerated
shift to online trading. The most significant investment
growth is expected in industrial property, as businesses
acquire more space to store goods centrally, rethink
distribution and increase stockpiling due to border concerns.
Three fifths of respondents cited Scotland as a key region
to achieve greatest residential returns over the next five
years, indicating a rebalancing of where in the UK we will
see the greatest returns on investment. The challenge will
be maintaining the momentum seen over the last year
following the end of the LBTT holiday, albeit the residential
housing market is seen to be relatively secure and we would
expect to see an increasing focus on the build-to-rent sector
from institutional investors.
Recent statistics shared with RSM highlight the extent of
non-domestic investment in the Scottish property sector.
It is imperative that Scotland continues to attract this
investment, particularly as we expect to see change in our
cities with many buildings repurposed from their historic use.
Interestingly, 81% of respondents expect to see unused retail
property repurposed for residential use, followed by leisure
(44%); both of which would further support the expected
growth in residential returns.
The spotlight is firmly on the future of the office. How
businesses occupy their office space and how employees
collaborate as teams is an important balance which will be
critical for businesses to get right to thrive in the ‘new normal’.
Green energy solutions are considered the number one
future priority and we are seeing developers and investors
putting environmental, social and governance (ESG)
considerations at the forefront of investment decisions.
Whilst Covid-19 and Brexit are impacting property
decisions in the short-term; the Government’s response to
combat the conditions will have a marked and longer lasting
impression on the property sector. In the future, principal
stakeholders, landlords, occupiers and lenders will need
to share more evenly in the risk of owning, operating and
funding properties.
Download a full copy of the Real Estate 360 report at
www.rsmuk.com/ideas-and-insights/real-estate-360
May 2021 INSIDER 87
PROPERTY SPECIAL: ON THE HIGH STREET

T
HE Covid pandemic threw
up some surprising heroes
– not just the health and
care workers but also shop
assistants and lorry drivers who kept
us in food and essential supplies and
the staff of anonymous grey sheds
who kept the system working.
Yet bricks-and-mortar retailers
were pulled out of our high streets
like failing teeth, leaving gaps
cosmetic surgery seemed unlikely
to repair. In spite of that there are
optimists who see solutions.
Asset manager and developer
Scoop has appointed award-winning
POD Architects to start reconfiguring
and future-proofing The Thistles
Shopping Centre in Stirling, which
it acquired in December. With more
than 500,000 sq ft of retail space in 90
units, its anchor tenants include Next,
Boots and Primark.
“The high street is expected to
take on a very different form post-
Covid and we now have an exciting
opportunity to shape the future of the
Thistles,” says Scoop director Mark
Hewett. “Future-proofing is vital to Ringing the changes
in the high streets
ensure primary shopping centres
remain relevant and a place where
people want to be. They will be about
far more than just shopping.”
Other challenges include new uses By FRANCIS SHENNAN Above: Volunteers the factors that has benefited online
for large iconic buildings. “We’ve Katie Anderson shopping which, in turn, has posed a
already seen some interesting plans for individuals or businesses from the and Martin Joseph threat to high streets.
repurposing large high-street spaces, DG1 and DG2 postcodes and people O’Neill “There has been an increase in
Below: Scott demand for logistics and industrial
including ex-Debenhams stores, from outwith the town can join as
Hogan, Kinight
which have been used as community non-voting members. “In November space across Scotland,” says Scott
Frank
hubs by charities, incubators for 2018, we gained ownership of our Hogan, Scotland lead on industrials
start-up businesses, and university first building, The Oven, at 135-139 and logistics at Knight Frank.
campus buildings,” says John Rodger, High Street,” says Midsteeple Quarter “Largely speaking, it is back to
commercial property partner at manager Scott Mackay. “Last year we pre-pandemic levels. While that
accountants Chiene + Tait. announced the purchase of 113-115 was coming as consumers gradually
“Here in Scotland, we’ve seen the and 117-119 High Street, renamed shifted towards online shopping, the
former House of Fraser building The Smithy and The Press. pandemic accelerated that process.”
in Edinburgh’s Princes Street “The Covid pandemic has Glasgow has a real supply-demand
transformed into the Johnnie Walker intensified the pressures on high imbalance, with a lot of existing stock
visitor centre. These developments can streets around the country, with either obsolete or unsuitable for
help revitalise city and town centres.” stores closing practically every week. modern purposes.
In Dumfries, Community Land This situation just amplifies the need “Occupiers are increasingly looking
Scotland and the Carnegie UK Trust for a fresh approach. for brand-new or purpose-built space
are working with a community “Part of the recovery from Covid – and, if that cannot be provided, then
company to refurbish eight under- must be the re-use of vacant retail at least a major refurbishment. There
used high street properties as “a living, spaces for new local businesses and is every reason to believe the level of
working, socialising, learning and social enterprises to start up.0” demand for logistics and industrial
enterprising quarter”. One of the keys to essential space will continue post-pandemic.
Midsteeple Quarter was founded high-street shops functioning during Studies suggest many consumers
in 2017 and is owned by its 500 the pandemic was a resilient logistics will stick to more frequent online
members. Voting members are sector. At the same time this is one of shopping,” adds Hogan. ■

rsmuk.com
88 INSIDER May 2021 www.insider.co.uk

H
OME IS where the office
is. Where once staff
added homely touches
to workspaces with
photographs and drawings, now
they add business organisation to the
dining or kitchen table.
“Recent surveys suggest a large
majority want to continue some form
of homeworking beyond Covid-19,”
says John Rodger, commercial
property partner at accountants
Chiene + Tait. “There are, however,
limitations on working from home.
It doesn’t suit all sectors and it can
pose limitations to effective customer
engagement, client relationships and
social interaction.
“We are, therefore, likely to see
workplaces adapting to better cater
for these requirements, ensuring
office spaces with flexible, accessible
and attractive amenities will continue
to be in high demand while poorly
located premises will be harder hit.”
John Jackson, project manager
at Clyde Gateway, agrees. “The
market has an increased appetite for
a flexible, hybrid approach for future
workplace offerings. An area that has
demonstrated unfaltering success
pre-pandemic and one that is set to
continue to do so after lockdown is
our flexible workspace at our Red
Tree Business Suites.
“They work well for start-ups and
SMEs, who started out working
from home and wanted to formalise
their working arrangements to
gain space to collaborate and provide
clear boundaries between home
and work-life.”
A recently completed office
development, Two and Three
Rutherglen Links, are two 6,000
sq ft office buildings with low-energy
and low-carbon specification and an
external courtyard for meetings and
well-being breaks.
“We are also currently building a
new office development, Eastworks.
This will see the transformation of a
former purifier studio into 33,000 sq
ft of Grade A office accommodation
with shower and changing facilities,
locker storage and break-out spaces.”
Rather than home-working
supplanting office-working it is
likely to play a different role in the
mix. “Initially a lot of people and
www.insider.co.uk
PROPERTY SPECIAL: THE FUTURE OF OFFICES
forward a year and the same
Rutherglen Links
survey returned a response of just
17 per cent.”
Working from home will continue
but that might be three days in the
office, two from home. “The big
challenge for occupiers will be how
practically to translate that into their
office set-up, how they use their
space differently – potentially with
more areas for collaboration and less
densely packed desks,” says Lewis.
Stewart Taylor, senior director at
CBRE Scotland, believes it is too
Clyde Gateway’s Eastworks project early to know for certain what the
most common template for new
work behaviour will be. Responses
to recent CBRE surveys show most
companies anticipate a hybrid
workforce with many employees
in the office a few days a week and
remotely a few days.
While this will likely mean a
reduced real estate footprint for
many occupiers, each company will
come to a different decision but they
are seeing a move up the quality
curve as employers look to provide
Suite success workplaces attractive to staff and that
can adapt to new forms of working.
“The role of the office is evolving.
for flexible Many companies are working
to provide a more distributed
network of workspace in the various
workplaces
locations that employees need to be.
Additionally, many are positioning
their flagship offices to serve as hubs
of transient activity by incorporating
By FRANCIS SHENNAN more space for collaboration and
socialisation.”
Initially a lot of people and Toby Withall, office agency partner
at Knight Frank Edinburgh, also
organisations thought the great believes the office is here to stay.
“Some occupiers have been forced to
working-from-home experiment make critical lease decisions during
ZRXOGOHDGWROHVVQHHGIRURIğFH
the past 12 months.
“On the whole, we have seen
Stephen Lewis, HFD Property Group (below) them decide to stay put and extend
agreements rather than breaking
away in favour of an entirely remote
organisations thought the great workforce. On the other hand, many
working-from-home experiment businesses are still considering various
would lead to less need for office changes but not yet taking action.”
space once the pandemic had Businesses may look at smaller
passed,” says Stephen Lewis, MD of facilities spread across the country
HFD Property Group. rather than a large HQ but that will
“A KPMG survey published a few come with additional costs. “Offices
weeks into the first lockdown showed are certainly changing but the most
69 per cent of CEOs were planning effective ways of working are yet to be
to cut back on their office space. Fast- fully realised.” ■
rsmuk.com
May 2021 INSIDER 89
PROPERTY SPECIAL: ESCAPE THE CITY
State-of-the-art offices
are still hot in the city
By FRANCIS SHENNAN
T
HE Covid pandemic changed
our attitudes to numerous
aspects of modern life.
Whether that change will
remain embedded in the “new
normal” has still to be seen, especially
in relation to property location.
“It is clear businesses are seeking
an alternative to city centres to cater
for new ways of working that have
emerged during the pandemic,” says
Guy Marsden, director at Highbridge
Properties. “The extreme scarcity
of Grade A stock has been apparent
in city centres for years. However,
Covid has accelerated the evolution
of today’s office requirements.
“Organisations now want buildings
that have proven sustainable and
renewable heating and cooling
technologies and are designed
to provide a variety of working
environments, centred around
inclusivity and employee wellness.
We are seeing demand for offices that
90 INSIDER May 2021
are easily reached by public transport,
car, bike and walking.
“Access to state-of-the-art
technology that can support a hybrid
model, developed around the head
office, local hub office and home
working is now also a major factor.
Low-rise urban business districts
The extreme scarcity of Grade A stock
has been apparent in city centres
Guy Marsden, Highbridge Properties (below)
are becoming increasingly popular,
allowing employees more space, both
inside and outside.”
He points to the Magenta business
park, a 20-acre urban, Grade A office
park his company is developing with
Clyde Gateway, a mile from Glasgow
city centre and with rail, road, cycle
and walking routes to the city and
outlying commuter towns.
CBRE reports occupiers seeking
guidance on what to do with their
office space post-pandemic but
this has not yet translated into
signed leases. “Many companies
are proactively reviewing their real
estate portfolios on the back of the
pandemic, albeit mostly short-term
re-gears,” says senior director Andy
Cunningham. “However, the extent
to which they are considering new
locations as part of this process
remains to be seen.
“The difficult part will be to
encourage people out from their
homes. Some companies are
considering alternatives to relocation,
namely adding satellite offices close
to the suburbs.”
At the same time, city centres
remain attractive, especially in places
like Glasgow where 1.4 million sq
ft of Grade A office space is under
construction, of which 81 per cent
is pre-let or pre-sold to occupiers such
as Barclays, HMRC, Virgin Money
and JP Morgan.
CBRE recently acted for the vendor
of Portcullis House on India Street
where the purchaser has applied for
planning permission to demolish and
build Glasgow’s largest Build to Rent
scheme with 750 units.
City-centre living is being promoted
by Glasgow City Council, which
Above: An artist’s proposes doubling that population
impression of new to more than 40,000 by 2035, a point
offices in Glasgow’s also made by Stephen Lewis, MD of
Bothwell Street HFD Property Group, who says: “I
that will feature a
absolutely do not think the pandemic
rooftop running
has changed attitudes towards living
track and garden
and working in city centres.
“We haven’t seen this much
activity in the city from a residential
perspective for around a decade.
“Offices themselves are
adapting too. For instance, at 177
Bothwell Street we will have an 8,000
sq ft roof-top terrace incorporating a
150-metre running track so occupiers
can be outside while staying ‘within’
the building.”
A similar approach in residential
sees Native Land developing the
152 New Eidyn apartments at
Edinburgh’s St James Quarter with
fifth-floor private gardens. Sales
and marketing director Nicholas
Gray says: “The stunning Garden
Room and sky gardens provide
communal spaces for working,
meetings and collaborations.” ■
rsmuk.com
www.insider.co.uk

P
ROPERTY has had more
than one type of lockdown
to contend with. As well
as lockdowns due to the
pandemic, all UK open-ended
physical property funds were last
year forced to suspend dealing as
material uncertainty hit independent
valuations.
Little surprise that this year’s first
quarter for Scottish investment
was subdued, although the current
quarter has brought bright spots. One
was the purchase of major assets in
Glasgow and Edinburgh, totalling
£44m, by a joint venture between the
discretionary fund vehicle of Trinova
Real Estate, TREOS, and Swedish
investor Europi Property Group.
They bought the 10-year-old
96,267 sq ft, eight-storey Grade A
Cuprum on Argyle Street on the
edge of Glasgow’s International
Financial Services District (IFSD).
Its tenants include AXA Insurance
(UK), Teleperformance, SAS
Software and Citres.
Their other purchase was the
1819 Stamp Office, 52,177 sq ft and
seven storeys of Georgian building
near Edinburgh’s Waverley station
that has been redeveloped behind a
retained facade to provide Grade A
office space occupied by the Scottish
Legal Complaints Commission,
The Scottish Ministers, Covance,
QueryClick and Senvion.
Property advisory firm Lismore
Real Estate’s review of the first
quarter pointed to subdued trading
at £175m, which is 70 per cent down
on the five-year average. However,
more product is either being
prepared for sale or being quietly
marketed, suggesting this will be a
stronger quarter.
Open-ended UK funds are
continuing to sell. Other funds focus
on matching liabilities and products
or following logistics, living and life
sciences. Overseas investors have
been subdued by travel restrictions
but a weight of capital is likely to
return this year.
“The beginning of restrictions
easing and the successful vaccine
roll-out is starting to offer light at
the end of what has been a very
long tunnel,” says Lismore associate
Chris Thornton. “The impact across
www.insider.co.uk
PROPERTY SPECIAL: INVESTMENT & INFRASTRUCTURE
Glimmer
of light for
investment
after gloom
By FRANCIS SHENNAN
property sub-sectors is varied. “The
logistics and industrial juggernaut
continues to move apace, with
the £14.3m acquisition of Titan at
Eurocentral being the standout deal
of the quarter. Demand continues to
outstrip supply and we are beginning
to witness speculative logistics
development across the central belt.
“With such strong market
dynamics, those currently on-site with
speculative developments are likely to
be the early winners. Any talk of the
demise of offices is hugely overstated,
with the majority of workers keen to
reconnect with colleagues.”
Life and leisure are attracting
attention. “The living sector
continues to be top of many
investors’ buying lists and we
anticipate the leisure sector will enjoy
a post-Covid bounce.”
The pandemic accelerated
fundamental changes in retail,
negative and positive, with
new players entering the retail
warehousing market, primarily
focused on urban parks and
food-led schemes. Shopping centres
with limited alternative uses are
seeing value reductions in Scotland
of 50 to 75 per cent.
Ryden’s Scottish Property Review
of the outlook for this year saw
industrial market demand hitting
limited supply. Development land is
also sought by the residential sector.
While demand stalled in early-2020,
the market for well-located sites is
back to pre-covid levels.
On infrastructure, Doug Smith,
chairman of CBRE Scotland, says:
“Through early engagement with the
private sector, we should make sure
the investment in factories, offices or
houses which is necessary to deliver
economic and employment outcomes
will follow that initial investment.
“Create serviced sites and
plots by all means but think beyond
that to the creation of homes for
people to live in and new business
premises where jobs can be created.
Without compromising policy in
areas of planning and other necessary
statutory consents, how can the
process of getting permissions be
streamlined so that more projects can
start more quickly?”
Projects may need support if
Above: The eight- private-sector capital investment
storey Cuprum, is to be released. “There may
on Glasgow’s Argyle
be a need for more than ‘light
Street
touch’ intervention from the
A Below: Chris
Thornton, Lismore public sector.”
John Rodger, partner at Chiene
+ Tait, warns: “With the proposed
increased in Corporation Tax from
March 2023, this may mean that
some companies may prefer to hold
off investment to set it against their
profits when there is higher tax rate.
“Banks are being supportive at
the moment, with most ignoring
covenant breaches and taking a
generally lenient approach with
lenders. I expect this will change as
we move out of lockdown.” ■
rsmuk.com
May 2021 INSIDER 91
WEALTH MANAGEMENT: FRANCIS SHENNAN

Take a few careful steps and you

can beat the inheritance tax freeze
B
ENJAMIN Franklin gets the credit
for the quotation, even though it
was used by Daniel Defoe before
him and actually originated in
1716 with the English actor and dramatist
Christopher Bullock: “Tis impossible to be
sure of any thing but Death and Taxes.”
The Covid pandemic sadly led to a huge
increase in the former and now looks set to
increase the latter, even if the first increases are
more covert. Chancellor Rishi Sunak has already
frozen the Lifetime Allowance for pensioners,
the Capital Gain Tax (CGT) and Inheritance Tax
(IHT) thresholds until 2026.
“Freezing the lifetime allowance could see a
number of people inadvertently exceed their
allowance and incur a 55 per cent tax hit which
they otherwise would not have to pay,” says
Simon Harrington, senior public policy advisor
at PIMFA, the trade association for the wealth
management and financial advice industry.
“Freezing both the Inheritance Tax and Capital
Gains Tax also discourages the public from
investing in our economy when we need an
investment-led recovery.”
The IHT freeze alone will net the taxman nearly
£1bn. “Freezing the nil-rate band and residence
nil-rate band means more and more people will
fall into the inheritance tax net over the next five
years,” says Sean McCann, chartered financial
planner at NFU Mutual.
However, the Office of Budget Responsibility
predicts house prices will increase 5.7 per cent
this year but then fall back 1.7 per cent next
year. That could mean many people overpaying
IHT on property.
There are ways to beat the freeze and reduce the
40 per cent tax on assets above the nil-rate bands.
Putting more money into your pension gives
you tax relief on the money paid in but also “any
money left in your fund on death will normally
be free from inheritance tax,” says McCann.
“This could allow you shelter up to an additional
£1m-plus from inheritance tax.”
Spend your pension last. “Using money held
in ISAs and other investments that are subject to
inheritance tax first allows you to preserve more
of your pension fund, which can normally be left
free of inheritance tax.
“Any money you give away on a regular basis
from your income that doesn’t impact your
normal standard of living is immediately exempt
from inheritance tax, even if you die within
seven years. The rules mean it must be from your
income not your capital, it must be regular, such
as an annual gift.”
Freezing IHT and CGT discourages
the public from investing in
our economy when we need
an investment-led recovery
Ensure your spouse or civil partner is
maximising their pension to take advantage of
their £1.07m Lifetime allowance. And reclaim
overpaid inheritance tax. If the executors sell
property at a lower value within four years, they
can make a claim. If a property were to fall in
value by £10,000 this could mean up to £4,000
being reclaimed.
Inheritance tax on qualifying shares and
investments can be reclaimed in the 12 months
after death. As the shares are aggregated, it can be
better for executors to pass shares that have risen
in value direct to the family and sell shares that
have fallen to maximise the tax reclaimed. ■

IN FOCUS

Don’t forget to include cryptocurrencies in your estate inventory

The taxman is not the only way to lose your
money. Unclaimed funds from banks, building
societies, pensions and investments now total
more than £1.25bn. This is now being boosted by
the boom is cryptocurrencies such as Bitcoin.
Almost 10 million Britons now have some
form of cryptocurrency, a rise of 558 per cent on
the number who owned one at the beginning
of 2018. “Digital assets are becoming a more
prolific part of one’s portfolio,” says Caoilionn
Hurley, managing director of Co-op Legal
Services, “but if billions of pounds of traditional
investments are sitting unclaimed, we have real
concerns about how difficult it could be to track
ownership of less tangible investments such as
Bitcoin and non-fungible tokens like digital art.”
In 10 or 20 years, a small amount of
cryptocurrency could be worth a considerable
sum of money to any benefactor of your estate,
but only if it is properly and legally recorded and
easy to access once you’re gone.
“You must get your affairs in order and ensure
you complete an estate inventory to avoid
missing out any assets,” adds Hurley. “Your legal
advisors must have a thorough understanding
of the estate, including any digital effects, at the
time a will is made.” ■

92 INSIDER May 2021 www.insider.co.uk

 WEALTH MANAGEMENT: Q&A

STUART PATERSON Julius Baer International

Q&A
Q The Covid pandemic and resulting
lockdown have given many
businesses, especially SMEs, a tough time.
Yet you’re quite optimistic, aren’t you?
Working with business owners and
entrepreneurs in Scotland is something
we are very passionate about. We set
up our regional offices in 2018 and
recognised the talent and innovation
coming out of Scotland.
We wanted to make sure we had people
on the ground who could work with those
businesses and entrepreneurs to help
them achieve their goals. We have seen
tremendous growth in this sector and have
made a real effort in the business community
in Scotland, demonstrated in our recent
sponsorship of the EY Entrepreneur of the
Year Awards.

How can these businesses be helped?

In terms of where we can help on a
day-to-day basis, we often find that the
initial value we can provide to clients –
particularly business owners – is the ability
to surround them with a top-class team of
experts. This is where our relationships with
the corporate finance, legal and accounting
community is of real benefit.
We want to ensure that, from the start,
the client has access to the best advice and
expertise in their specific sector. On top of
this, we also have existing clients who are
more than happy to help up-and-coming
entrepreneurs by sharing their experiences As the business grows, the an introduction to another family business
who has been in a similar position for a bit
and potentially take board positions on
fast-growing firms, which is something we founder is not as focused of Q&A.
We also want to start advising the
have had great success in facilitating.
on his own personal shareholders of the firm up to a year or
two before any event so they can take
Are we talking just about start-ups here?
No, it is not just to those starting their
affairs as the business can maximum advantage of any tax planning
that can be done.
entrepreneurial journey. Those who have
well-established businesses or are serial
often consume him or her We want to help them meet their long-term
personal and family goals, so ensuring they
entrepreneurs can really take advantage of have the right tax-planning structure in
our expertise, whether that be putting circumstances and it is our role to help them place can make a world of difference to them
in place complex financing for the next navigate the path between the two. in the future.
stage in their business venture or helping There is nothing worse than hearing from
them with an investment portfolio and What are the times when this is most a prospective client that they wished they
wealth-structuring plan ahead of retirement. crucial for them? had taken our advice sooner. Once any
As the business grows, the founder is not This is particularly important when the event has occurred our role is to ensure the
as focused on his own personal affairs as owner is trying to make a significant change owner’s risk and objectives all meet to ensure
the business can often consume him or in the firm, be that passing on to a future they meet their long-term personal, family
her. That is where we step in to help them generation, a partial or a full realisation. This and financial goals. ■
work out their priorities and how to achieve is where we can help in a number of ways, be
them. In many cases, owners do not see any that with the ability to lend against private Stuart Paterson is executive director in charge
line between their business and personal company shares, bridge finance to an IPO or of Scotland at Julius Baer International.
www.insider.co.uk May 2021 INSIDER 93
COMMENT INSIDER: APPOINTMENTS
Ken Morrice People on the move in Scotland’s in association with
Founding managing partner
MM Search
business community
W: www.mmsearch.co.uk
Marchant to chair Logan Energy
LOGAN Energy, the
hydrogen technology
Helping your business find trailblazing company, has
the best talent appointed former SSE
chief executive Ian Marchant
Scotland has always been fertile land for unlocking future
talent. With some of the best universities in the world and as Chair.
forward-thinking entrepreneurial businesses it is a place many The move was one of
will choose to grow their career from. With spring/summer three key appointments
comes the traditional intake of intern opportunities and it is as the Musselburgh-based
good to see that so many businesses in Scotland are continuing company gears up for
their commitment to the development of future talent. international expansion.
Following on from a very different and difficult Marchant is joined by
undergraduate year, internships are more important now non-executive directors Bob
than ever. The Saltire Scholar internship programme, run by MacDonald, former CEO
Entrepreneurial Scotland, is one such vital enterprise. The
specialist technical solutions
Saltire Scholar programme is a fantastic chance for students to
undertake an internship with burgeoning businesses and we at Wood, and Derek utility, power generation and wind industry had in the
are privileged to be one of those. As a current member of the Mathieson, former chief clean energy markets. early-2000s.”
Saltire Leaders Catalyst Programme, it was a great opportunity marketing and technology He said: “It is exciting Bob MacDonald most
for us to be part of this initiative and help select interns for the officer at Baker Hughes. to get involved in an recently led the consultancy
wider programme. Marchant, who is the established business that’s division of multinational
Speaking from experience, I know how important an current chair of Thames part of a growing industry engineering business
opportunity to get ‘stuck in’ can be at the start of your career Water, has more than 30 and I believe that hydrogen Wood, focusing on the
and seeking out the best senior talent for an organisation is at years of industry experience can have as big an impact clean energy, automation,
the core of what we do, so the synergy with our first internship driving companies at the as North Sea oil and gas nuclear, oil & gas, mining
programme is very poignant.
forefront of the private had in the 1970s or the and digital markets.
For internships to be successful for both the students and
the businesses, it is important they are immersive experiences,
focusing on ‘live’ commercial practices – which, in today’s
economic climate, has a host of challenges. But it is important Wakefield to lead Higgins takes helm at Edinburgh Fringe
for students who want to hit the ground running and see, and CityFibre project FORMER Tesco Bank CEO
be part of, all sides of an entrepreneurial business. The inner Benny Higgins has been
Telecommunications company
mechanics and what make a business tick can only be felt appointed as the new Chair of
when experienced first-hand. CityFibre has appointed a new
manager to lead the £100m the Edinburgh Festival Fringe
The tangible know-how working as an intern is so very Society Board of Directors.
important, particularly as many businesses are still working fibre rollout in Edinburgh.
Paul Wakefield joins as He succeeded Professor Sir
out how they can operate within the rules and restrictions
city manager to lead the Timothy O’Shea, who served
possible. We feel passionate that we want to give these
students an insight into the industry but also a taste for project in Scotland, replacing two full terms as Chair.
the future. Elaine Doherty, who became An experienced banker,
Ultimately, internships are a vital way to unlock future talent CityFibre’s head of data insight. Higgins was strategic advisor Sistema Scotland and Trustee
and, working in the headhunting industry, this is always front The company is engaged in to the First Minister on the of Burrell Renaissance.
of mind. Harnessing talent early on, we would like to be in a a five-year full-fibre network development of the Scottish Tim O’Shea’s tenure was
position that we can then offer permanent graduate positions project aimed at making National Investment Bank. recently extended to March
to successful candidates in future. Edinburgh one of best digitally He has also worked as 2021, due to exceptional
The MM Search Executive Intern Programme launches in connected cities in the UK.
chief executive of retail circumstances brought about
summer 2021, with students from St Andrews University and Wakefield started his career
as a police officer with the Met
banking at RBS, and chief by the coronavirus pandemic.
Heriot-Watt University being offered paid internships.
MM Search partners with clients to seek the best-in-class in London, before spending executive, retail, of HBOS. Higgins said: “The
senior talent across a wide range of sectors in both the interim almost six years as head of His current non-executive Edinburgh Fringe is an
and permanent marketplace. marketing and partnerships at portfolio includes him being essential component of
Marketing Edinburgh. Chairman of the National Scotland’s cultural heritage. As
For futher information contact He was previously Galleries of Scotland, a we rebuild our future after this
www.mmsearch.co.uk director of operations and Trustee for the Edinburgh extraordinarily difficult time,
communications at Scottish International Culture Summit, I know the Fringe will have
Land & Estates and was Chairman of The Fine an essential role to play in the
in charge of marketing at Art Society (London and country’s economic, social and
property agency Bell Ingram. Edinburgh), Chairman of cultural recovery.”

94 INSIDER May 2021 www.insider.co.uk


The latest news from HR, recruitment, employment law
and staff issues by Ken Symon
Pandemic brings a new era…
and thorny issues in the workplace
W
ITH the full opening of the
economy well in sight, many
businesses are looking anew
at their workplaces and their
patterns of work.
As employees working from home return
to workplaces and, as the vaccination
programme continues to roll out, one key
issue employers will face will be whether they
can insist on employees being vaccinated.
Tony Hadden, head of employment
law and a partner at Brodies, says: “Some
employers may be able to insist an employee
is vaccinated in order to perform certain
tasks. This is because there is now evidence
the vaccine reduces the rate of transmission.
“This means employers can say that, even
if staff are operating other mitigations, such
as PPE, it is ‘safer’ for others if an employee is
vaccinated because the risk of transmission is
reduced. For roles in which the employee will
be interacting with the public, the reduction
of risk may justify insisting on employees
having had the vaccine.”
While most people have jumped at the
chance of being vaccinated, some are refusing.
This may present thorny issues for employers
and the refuseniks colleagues as they return
to workplace-based working patterns. But is
there action employers can take with regard
to an employee who refuses vaccination?
Hadden says: “It is unlikely to be lawful to
simply dismiss an employee who refuses to
take the vaccination. An employer will need to
consider the employee’s reasons for refusing.
Discrimination issues could be engaged if the
employee’s refusal is because of a protected
characteristic, such as pregnancy.
“It may be possible to allow them to work
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INSIDER:PERSONNEL
in a different way or redeploy them to other
duties. If that is not possible and there is
no way to mitigate the increased risk the
unvaccinated employee poses, the employer
may be able to dismiss the employee.”
But could employees refuse to work in the
same section or area of the workplace with
someone who refuses to be vaccinated?
“Employees have rights in connection
with health and safety,” Hadden says. “One of
those is the right to work in an environment
where the risk to health and safety is properly
controlled. If an employer has established
vaccination will reduce the risk of transmission
and an employee refuses to be vaccinated, and
therefore would increase risk of transmission,
it would be possible for a colleague to refuse to
work with that employee.
“Whether the refusal would be lawful will
depend on the evidence of the increased risk.”
But what about future employees?
Hadden says: “We are aware of employers
stating they intend to make vaccination a
condition of application. This runs the risk of
being discriminatory, given certain categories
of employee cannot be vaccinated.”
Hadden says employers should be prepared
to consider ways to avoid those employees
being disadvantaged by the policy, by
providing work-arounds, providing greater
protection or by them doing different duties.
He concludes: “We will see the
continued development of different ways of
demonstrating individuals have either been
vaccinated or pose a low virus risk. I think
this will feed into the practical ways in which
employers approach the issue of vaccination
(or virus risk) and it may be the law is left
scrambling to catch up.” ■
COMMENT
Gary Foggo
Health & Safety Manager
Navigator Law
E: gary.foggo@
navigatorlaw.co.uk
W: www.navigatorlaw.co.uk
Duty to protect the
mental health of
home workers
Following a survey of more than 5,500 people in
11 countries, Lloyds Resister found that 70% of
respondents had experienced higher levels
of stress whilst working from home. This is
attributed to changes in the working environment,
increased workload and lack of support from
managers and colleagues.
Results showed almost 50 per cent experienced
a negative change since working remotely due
to longer working hours, feelings of isolation and
higher levels of anxiety. Just over 50 per cent had
a positive outlook, feeling their work-life balance
was improved by no commute. Some 48 per cent
believed that disclosing a mental health condition
would impact career progression, just 22 per cent
would feel confident discussing mental health
concerns with HR.
For 25 per cent, their employer had provided no
additional support addressing mental wellbeing
while 50 per cent thought their employer
emphasised physical safety over general wellbeing
(psychological safety) whereas 26 per cent thought
their employment emphasised both equally.
Where policies and procedures are in place, they
should be proactive, promoting prevention and
providing instruction. Managers should be aware
of them and have the appropriate support in
delivering them.
Any policies and procedures should be revisited
to reflect change in working arrangements
(homeworking or hybrid working) as these move
from temporary to permanent.
Research carried out by mental health charity,
Mind, revealed 56 per cent of employers would like
to do more to improve employee wellbeing but felt
they did not have the right training or guidance
to do so.
As ways in which we work have evolved then the
ways with which to engage, support and protect
workers must evolve also.
Established systems for mitigating ‘traditional’
health and safety risks may not be enough and
new innovative solutions, delivered on a more
collaborative basis (for example, health and safety
functions working closely with HR), will be required
to ensure both the physical and mental health
needs of employees are given equal focus.
If you have any questions on the above
article, please contact 0333 2400 308 or
enquiries@navigatorlaw.co.uk
May 2021 INSIDER 95
 Insider’s regular events picture pages
In association with

HIGHLAND SINGLE MALT

SCOTCH WHISKY

Above left: Craft beer

company Flavourly celebrated
its one millionth dispatch in
April with co-founder Assean
Sheikh marking the event
by making a personal delivery
– and gifting it for free –
to lucky Edinburgh customer
Bill Harvey.
Above: The National Wallace
Monument was lit up in the
blue colours of Strathcarron
Hospice to celebrate the
palliative care charity’s
40th anniversary.
Left: Roderick Urquahart,
the fourth generation of the
founding family, is stepping
down from Edinburgh law firm
Urquharts, ending a 145-year
connection with the firm.

WORTH THE WAIT

96 INSIDER May 2021 www.insider.co.uk
Above: Winners and judges of this
year’s AcccelerateHER Awards finals for
women-led businesses held in March. The
awards are run by Investing Women whose
CEO, Jackie Waring, is in the centre.
Right: Castle Water, the Perthshire-based
independent water retailer, won a Save The
Children’s Jessica Award for Oustanding
support for children in emergencies. It was
presented at a virtual awards ceremony
hosted by Natasha Kaplinsky.
Below: Edinburgh Chamber of Commerce
in March hosted its business awards
virtually for the first time, with some
attendees choosing traditional black-tie
fashion despite being in their own homes.

GLENGOYNE.COM
TAKE YOUR TIME, ENJOY YOUR DRAM RESPONSIBLY

www.insider.co.uk May 2021 INSIDER 97

THE TEN
MINUTE
INTERVIEW
Praveen Kumar
Praveen Kumar is an award-winning chef, restraurateur
and entrepreneur. He has more than 20 years’
experience working in hospitality, including at five-star
establishments Gleneagles and Turnberry. He and his
wife, Swarna, opened the award-winning authentic India
restaurant Tabla in Perth in 2009 and his own Indian cook
school in 2017. All the spices he uses are supplied by his
family, who still live in the Southern Indian village where
he grew up. His service offering frozen Tabla dishes all over
the UK took off hugely in the first lockdown.
What five words would friends/colleagues use to
describe you?
Driven, focused, friendly, considerate, decisive.
If you could choose anyone, who would be your
fantasy board members and why?
I would choose Dhirubhai Ambani, who was India’s
first self-made billionaire. He started from scratch
and had one significant piece of advice that made
a big impact on me when I was 10 or 11 years old –
“Dare to dream.” I would also include my ex-boss and
ex-chairman of Gleneagles, Peter Lederer, who taught
me the value of planning well ahead and having
focus. I would also include the founders of Brewdog,
James Watt and Martin Dickie, who do a brilliant job of
innovatively marketing their brand to consumers.
If you could choose anyone, who would be your
fantasy dinner party guests and why?
The Queen would be on my invite list because, in my
mind, Praveen Kumar Authentic Indian Cuisine is fit
for a Queen! I would also invite Rick Stein, as he is my
favourite chef.
What is your favourite way to unwind during
time off?
My wife and I are great foodies and so, together
with our daughters, we like to explore Scotland and
sample the local cuisine. It is not uncommon for us
to travel a couple of hours in the car purely to sample
local foods.
What is the best advice you’ve ever been given or
what advice would you give to the next generation
of business leaders?
The advice I would give is don’t be shy about reaching
out and asking other business leaders who have gone
before you for advice and mentoring. Also, to plan
ahead, do your homework and then implement your
idea before it is too late. Don’t feel wary about raising
investment from day one and be willing to ask your
customers or clients for feedback.
If you were in charge of Scotland, what would you
change and why?
I would do more to promote Scotland as a destination
98 INSIDER May 2021
Top: Brewdog Martin Dickie
and James Watt
Above: Rick Stein
Below: Celtic Connections in
Glasgow
for people to visit from across the globe, especially
people from Asia. I would also work to encourage
young people to think more entrepreneurially and
think about what life might look like beyond school. I
also strongly believe that children should start school
later. There should be much more connection for
children with the natural world and life skills should be
taught as part of the curriculum from day one.
What sport are you interested in/which sporting
team do you follow?
I love cricket. I used to play as a youngster. I am a big
supporter of the Indian cricket team.
What was the last film/concert/entertainment event
you attended?
I went to Celtic Connections in Glasgow.
Describe a perfect day/night/weekend.
A perfect night for me would be to finish work, go
home and cook with my wife and kids and have some
friends over to play cards and enjoy a whisky. I love
a nice whisky. A perfect weekend day for me would
be to enjoy a late Indian breakfast and then go on an
adventure and explore somewhere new in Scotland.
What is your most embarrassing moment?
I was invited to cook on an STV show and I thought I
had taken all the ingredients I needed with me to the
studio. However, unfortunately I had left all my spices
in the car. The show started and I didn’t have any of
the ingredients I needed! I asked one of the show’s
runners to pick up my spice kit from the car park as
quickly as possible and, in the meantime, I had to fill
airtime until the spices turned up. The onions were
chopped very thoroughly that day!
Who would play you in the film of your life?
I would choose Tom Hanks. He acts with full heart and
soul and lives and breathes his characters.
What is your signature dish to cook?
Chicken Biryani.
What is your favourite place in Scotland?
I love the Cairngorms and Glencoe. I love driving
around that area and enjoying the beautiful scenery. ■
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With small class sizes and a state-of-the-art campus,
St Aloysius’ College is the ideal environment for learning.

Prospective families can now book a personalised tour of

our Kindergarten, Junior, or Senior schools.

Contact our Admissions Department today.

admissions@staloysius.org | 0141 332 3190 | staloysius.org

The world’s quietest
fire engine? Possibly...
until the siren’s on.
Charlotte. EMERGENCY ONE, CUMNOCK. 19th September 2020.

We provided funding to Emergency One

who answered the call to build the
very first fully electric fire engine. By the side of business
SCOTTISH BUSINESS INSIDER Apr/May/Jun 2021 Oil & Gas Review Football Finance Deals Quarterly Accountancy Review Manufacturing