www.bq-magazine.co.uk ISSUE SEVEN: SPRING 2012 serious truffle maker The Highland Chocolatier’s sweet Perthshire success a £12.5bn games changer Baroness Ford’s regeneration project aims for Olympic gold the winning years why Mike Cantley on the what, the how and the BQ live debate Women in the boardroom quay of life Charan Gill finds life after Ashoka and spiritual contentment in Rajasthan and... MusselburghISSUE SEVEN: SPRING 2012: SCOTLAND EDITION BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS SCOTLAND EDITION The new indispensible online companion to BQ. Register now. www.bq-magazine.co.uk/scotland Business Quarter Magazine £2.95
T HERE ARE STORIES THAT DESERVE TO BE CAPTURED FOREVER.Whether it’s a transatlantic crossing on a sailboat with friends, or the birth ofa child, there are precious, life-changing moments that deserve to be recordedforever. What will yours be? Let our engraving, enamelling and gemsetting artistsimmortalise your legend. A Reverso just for you.GRANDE REVERSO ULTRA THIN. Jaeger-LeCoultre Calibre 822. Patent 111/398.YOU DESERVE A REAL WATCH. 197-201 Ayr Road , Newton Mearns, Glasgow, Scotland, G77 6AE , Tel 0141 639 3344
SMALL FLEET. BIG NEEDS?Official fuel economy figures for the new BMW 3 Series Saloon range: Urban 25.4-57.6mpg (11.1-4.9l/100km).Extra Urban 46.3-80.7mpg (6.1-3.5l/100 km). Combined 35.8-68.9mpg (7.9-4.1l/100 km).CO2 emissions 186-109g/km.*Offer is available to business users only, figures exclude VAT. Participating dealers only. Not available in conjunction with any other offer. Figures include service, maintenance and repair forthe duration of the contract. Hiring example is based on a 36 month BMW Corporate Finance agreement for the model shown. A BMW 316d Sport Saloon, a deposit of £1,173.00 followedby 35 monthly rentals of £391.00, mileage charge in excess of contract mileage 11.57 pence per mile. All agreements are based on a contract mileage of 30,000 miles and include metallicpaintwork. Vehicle condition charges may apply at the end of your agreement. Offer correct at the time of printing and may change without prior notification. All hiring is subject to statusand available to over 18s in the UK (excluding the Channel Islands). Guarantees and indemnities may be required. Hiring facilities provided by BMW Financial Services, Europa House,Bartley Way, Hook, Hampshire, RG27 9UF. BMW EfficientDynamics reduces BMW emissions without compromising performance developments and is standard across the model range.
BMW | MINIBusiness PartnershipYOUR COMPANY BENEFITS. THE NEW BMW 316d SPORT SALOON £391 PER MONTH (PLUS DEPOSIT)*. • 118g/km CO2 • 13% BIK • 62.8mpg combined • Includes service and maintenance • Includes complimentary reversing assist camera • Includes Xenon headlights Delivering outstanding efficiency and unrivalled driving dynamics, the new BMW 3 Series Saloon is good news for the person behind the wheel as well as the one balancing the company’s accounts. With class-leading performance and efficiency, newly-refined styling plus a high level of standard specification, this is a car that is sure to make a big impact with small fleets everywhere. For further information and to find your nearest Business Partnership dealer, visit www.bmwbusinesspartnership.co.uk 316d Sport 118g/km 62.8mpg
CONTEBUSINESS QUARTER: SPRING 12Features PASSION THE DRIVER 50 44 bq live debate Women in the boardroom – how do we achieve it? 50 passion the driver SERIOUS TRUFFLE24 the quay of life Turnberry’s general manager is very Charan Gill on finding contentment in happy, and still getting to grips with golf Rajasthan – and Musselburgh 73 the winning years 7630 my £12bn games VisitScotland’s Mike Cantley on the Baroness Ford’s regeneration project what, the how and the why36 the green path 76 serious truffle The Scottish renewables revolution has The Highland Chocolatier reveals innovation and knowledge on its side Perthshire’s sweet success BUSINESS QUARTER | SPRING 12 06
TENTS SCOTLAND EDITION Regulars 40 COMMERCIAL PROPERTY The landmark developments creating our industrial and commercial landscape 56 BUSINESS LUNCH Sharp to the bottom of the glass KEEP SHARP 56 60 motoring BMM’s new 3-Series – like an old friend 62 wine THE ITALIAN JOB The Italian Job with Cookies on the side 08 ON THE RECORD Doing the positives in business 64 equipment Patek Philippe’s latest classic model 62 12 NEWS Who’s doing what, when, where and 68 fashion why, here in Scotland Vivienne Westwood is queen of the ritzy 20 AS I SEE IT 78 bit of a chat It pays to pay attention to the risks Gripping gossip from our backroom boy 07 BUSINESS QUARTER | SPRING 12
ON THE RECORD SPRING 12 Team culture motivates supporters A ten-minute tea-break with Jane Wright, chief executive of Law at Work, which is celebrating ten years in business and has been named one of the Sunday Times’ Best Workplaces in ScotlandWhat is it that Law at Work does? We and we’ll work within the law to guide them much more effective at work. What attractedmanage risk for organisations in all elements to the best outcome. More than 97% of our me was that I looked through all the material Iof health and safety, employment law and clients have had a positive client outcome. was sent and I thought what a fantastichuman resources. What we do is provide the What kind of people do you have at Law product. I thought why are they not biggerquality that organisations would expect from a at Work? We’re different because we have a and why haven’t I heard of Law at Work? Itleading law firm with a guaranteed all-inclusive range of highly qualified people both legal and was an opportunity to make a difference.fee structure. HR. Our legal team – headed up by Donald What have you brought since your arrival?But what makes Law at Work different MacKinnon – can deal with the simple issues When I joined, the first thing I did was spendfrom a traditional law firm with its own right through to tribunal and litigation. We are time with every person in the business andlegal expertise? We are very, very different. In not a call centre with HR advisers. asked them a host of questions. The besta traditional law firm, everything is about fee What are the issues that your clients face? insight is from your own people. Then I talkedgeneration and it is priced by the hour, even Some are very complex, such as large-scale to our clients. I shared my research and whatwith a retainer in place. We truly do not redundancies, and TUPE transfers and a tricky came out loud and clear was, “We’re goodmeasure the time we spend with clients; we disciplinary case that might end up in tribunal. but we need to spread the word”. It was mydon’t have the systems to do it. There’s not Some of them are just additional help with job to bring a vision and a three-year businessclock on the table. Unlike a traditional law firm HR support. plan. I didn’t have to change the products,we are there from the beginning for clients, soit’s a business partnership and we operatemore of a consultancy model. We only work It was my job to bring a vision and afor organisations and we are seen as part of three-year business plan. I didn’t havethe in-house HR team.So how do you measure the value of what to change the products, I had to engageyou do then? We are measured on clientsatisfaction and retention and we are people in what we could delivermeasured as a team. This drives a differentbehaviour in the firm. Everybody’s working tosupport all the clients – there are no barriers. What is your typical client size? Every one I had to engage people in what weWhat does a business or an organisation of our clients works in a different way with our could deliver.get? Most of our business is in fixed-fee legal team, depending on what’s important. Where will the business be in three years’employment law and health and safety Some of our smaller clients don’t have an time? I want to be the leading fixed-feeservices. We also provide consultancy and in-house HR department support, we are that provider in Scotland. Our chairman isadd-on but for the core services, what our outsourced support, with a legal angle. Others Magnus Swanson, the former chief executiveclients get is unlimited access to our qualified with an in-house HR director will use us for the of Maclay Murray Spens LLP, who still have ateam of employment lawyers or health-and- more complex issues. stake in our company. We are small and wesafety specialists – 24/ 7, 365 days a year. They What attracted you to Law at Work? have to set our ambitions. There were 19can consult us as early in the process – right up I knew I wanted to do something different. I’d people when I joined in May 2010; now thereto dealing with litigation. worked with GlaxoSmithKline and Diageo in are 27 of us. We have offices in Edinburgh,What is your approach? We have a much senior sales roles. There was the personal side Glasgow, Aberdeen and London and we’remore commercial approach, so what we do is that I wanted to live in Scotland. I believe if working with clients south of the Border, but 08look at the solution and outcomes for business you’re happy as a person that makes you I’m focused on where we are strong. BUSINESS QUARTER | SPRING 12
SPRING 12 ON THE RECORD Applications invitedCommunication – and the ease of – is at the heart of Scotland’s digitalgroundswell, whether it’s in education, entertainment or industry The teaching potential of technology is one Within a primary-age classroom, group Digital Dozen: Tech start-ups of those hot-button topics. Are we good activities and collaborative working are key, to watch in Scotlandparents if we give a child an iPad to play with, Ho says.opening up all potential learning opportunities “But there are so few applications and games 1. Mobile Acuity – Edinburghand preparing them for a technologically- that facilitate that sort of collaboration. We all Like Interface3, Mobile Acuity is based inoriented future, or is it second only to dumping have to work together and collaboration is Appleton Tower in the University of Edinburgh.them in front of the telly while we get on with much more a part of our skill set.” Mobile Acuity’s Visual Interactivity platformmore interesting things? While multi-touch is especially well suited to lets consumers use camera phones to identifyAs with any new technology, touch-screen group learning, their work has taken the team products by taking pictures of them. Take atablets have their doubters, but new into other technology areas as well, including picture of a tin of beans – or even a picture ofapplications coming out are showing that augmented reality and motion sensing a picture – and if you see an advertisementtechnology can do unique things in the technologies like Microsoft’s Kinect. and like the look of it, send it to a retailer wholearning environment, and certainly has its The company recently made the news for its will then send you more information on theplace in the tools available to teachers. work with University of Edinburgh researchers product and potentially even let you buy it onKate Ho set up Interface3 in 2009, planning to on iPad apps for children with autism. the spot. Tesco is running trials of the Visualfocus on touch-screen technology. She Ho says: “They were looking at how – or Interactivity platform, and already uses Mobileanticipated working as a consultant, bringing whether – apps and games can help children Acuity’s SDK barcode scanning technology.her own understanding of the format and her with autism with social skills. They had a fairly In January, Mobile Acuity won “a significantdesign expertise to other people’s projects. rough app they handed to us, looking for equity investment” to expand its operations“And to kiosks,” she says. “Digital signage, someone to polish it up. So we’re now in into the US and Asia. The investment camepoint-of-sale systems, that sort of thing, negotiation with the university to license it. from bieMEDIA, a US-based company, and aand looking at how multi touch could “We bring in the commercial expertise and Scottish business angel network.influence design.” marketing to drive the whole thing and to www.mobileacuity.comThen in 2010, Interface3 won a contest set up basically open up a market that is really quiteby SMART Technologies, a manufacturers of underserved.” 2. My1login – Glasgow“smart tables” – touch-sensitive table tops that By the same collaborative token, developing My1login recently secured £250,000 inare “not far off a flat iPad”, says Ho. While these apps isn’t something the company could funding from Scottish Enterprise to develop itsthese smart tables are not much seen in the have tackled alone. password storage system which lets usersUK, they are increasingly popular in the US. “It’s very difficult to just go round developing securely store and use all of their favouriteAs SMART Technologies was very focused on apps for autistic children; you really need sites with just one password. “Military grade”the educational market, Interface3 began to specialist knowledge,” Ho says, adding that encryption assures security and the companywork closely with teachers, and with others she is incredibly glad to have started her itself has no access to users’ data. Users caninterested in learning and education. business in Edinburgh where support for tech store all of their passwords and even securely“We ended up shifting quite radically away start-ups is very high. With offices in the share them with friends and colleagues.from point-of-sale systems and digital signage University of Edinburgh’s Appleton Tower, the A free version is available, with someand so on, firmly into education,” says Ho. team is surrounded by start-ups at a similar advertising, but the company aims to upgradeNow employing four people full-time and two stage of growth. customers to a paid version.part-time, Interface3’s games developers and Ho co-runs the Startup Café, a website www.my1login.comgames artists are working on educational encouraging start-ups with information ongames with a strong collaborative element. events, meet-ups, competitions and news on 3. FreeAgent – Edinburgh“That’s where the multi-touch comes in,” she local companies. FreeAgent offers online, cloud-basedsays. “We (aim for) really good games design “It’s great to watch as other start-ups get accounting services for small businesses in themarried with an understanding of pedagogy, going,” she says. “You just feel really pleased UK. More than 12,000 UK sole traders areactual learning, not just playing games for your mates are doing so well. And it spurs you using its service, FreeAgent says, and many 09games sake.” on, too!” accountants also direct their clients to record BUSINESS QUARTER |SPRING 12
ON THE RECORD SPRING 12income and outgoings using the service. The 6. Outplay Entertainment – Dundee Fringe, London Film Festival and the Scottishcompany recently moved to new offices in the The social and mobile games developer was Qualifications Authority. Apps are either builtWest End of Edinburgh and expects to grow set up in Dundee in 2010 by brothers, and from scratch or created using Hedout,staff numbers to almost 40 this year. games industry veterans, Richard and Douglas Kotikan’s own content delivery programme.Two funding rounds in the past two years have Hare. They previously created a studio in The company won the heraldscotland.raised over £3m in capital from private and California, called The Collective, which com-sponsored Best Use of Mobile Technologyangel investors as well as IRIS business developed high profile titles, including Star Award in last year’s Digital Business Awards,software and the SM Trust. A partnership with Wars: Episode III, Indiana Jones and the for its work with SkyScanner.IRIS, the UK’s largest private software house, Emperor’s Tomb. With Outplay Entertainment, http://kotikan.comand one with Barclays Bank and BCSG, as part the Hare brothers are focused on games forof their My Business Works software package, social and mobile platforms, including 10. Technabling – Aberdeenhave also boosted FreeAgent’s growth. Facebook, iOS, Android and Google+. The This Aberdeen University spin-out is workingwww.freeagent.com Dundee studio opened in April 2011, backed on an application to translate sign language by Pentech Ventures and the Scottish into text. Using the Portable Sign Language4. Epistemy – Edinburgh Co-investment Fund. Translator, the speaker will sign into a cameraEpistemy is a spin-out from the Uncertainty www.outplayentertainment.com on a computer or mobile phone, and theirProject at the Institute of Petroleum words will be reproduced as text on theEngineering, Heriot-Watt University in 7. Hydrafact – Edinburgh screen. The team hopes to have theEdinburgh. The Uncertainty Project is looking Another Heriot-Watt Institute of Petroleum application available by 2013. The PSLT projectat the best ways to produce accurate estimates Engineering spin out, Hydrafact was has secured £150,000 in funding from theof risk and uncertainty in predicting future oil established in 2006 and now employs 12 Small Business Research Initiative, sponsoredproduction and reserves. Launched in 2009, people, five of them full-time. Its recently- by the Department for Business InnovationEpistemy aims to create easy-to-use software released software, HydraFLASH, focuses on and Skills and the Technology Strategy Board.to tackle complex engineering problems. Its flow assurance to ensure oil wells do not www.technabling.co.ukfirst product, Raven, builds on the work of the become blocked. Engineers can ensure oilUncertainty Project, but longer-term the production is maintained and problems 11. Kiltr – Glasgowcompany aims to move into other markets. anticipated. Hydrafact has been profitable The social networking site recently secured awww.epistemy.com since its first year, based on its consultancy third round of funding and plans a full launch services, training and sales of its HydraCHECK this year. Established in 2007, and aimed at5. oneDrum – Stirling hydrate inhibition monitoring device. “everyone with a Scottish connection”, KiltroneDrums peer-to-peer desktop application /www.hydrafact.com aims to connect Scots living in Scotland, thebrings “Google Docs” functionality to “Scottish diaspora” and anyone who feels anMicrosoft Office applications, letting users 8. Contemplate – Edinburgh affinity with the country. Investors include Parcollaborate on Word, Excel and PowerPoint Set up in 2009 by staff from the University of Equity, Scottish Investment Bank andfiles. Each user can work offline and any edits Edinburgh’s School of Informatics, Glasgow-based venture capital group Barwell.are added to the shared document when they Contemplate creates tools to improve software www.kiltr.comnext connect. Funded by Amadeus Capital for financial institutions. Its ThreadSafePartners, the service was launched in product helps identify bugs before they 12. VLC Ltd - EdinburghNovember 2011 for Windows users, with a become costly mistakes. The company is VLC – or Visible Light Communications – hasMac beta version now available. Up to 100 currently working on trials with top-ten raised £180,000 through the Par Syndicateusers can collaborate, and work on files up to investment banks, and aims to make its first and other private investment, and supported5Mb in size. Initially the product is free to product available for general release this year. by Scottish enterprise’s Proof of Concept. Thedownload, although oneDrum says it is www.contemplateltd.com initial funding has been earmarked to launchworking on a premium subscription model. the first prototype “Li-Fi” technologyAlthough the initial focus is on Microsoft 9. Kotikan – Edinburgh application which will see LED light carryOffice, the underlying oneDrum sharing Yet another Appleton Tower start-up, the optical wireless communication streams.technology could be used for any files, and mobile development company has been Research was carried out by Professor Haraldlonger-term the company plans to release an creating apps for mobile devices since 2007. Haas, Professor of Mobile Communications,application programming interface (API) and Formerly known as Loc8 Solutions, it changed School of Engineering/Institute of Digitalsoftware development kit (SDK) to let users its name to broaden its reach from location- Communications University of Edinburgh, whoincorporate it into other products. based apps. Clients include fellow Scottish heads the D-Light project. 10http://onedrum.com business SkyScanner, the Edinburgh Festival http://visiblelightcomm.com BUSINESS QUARTER | SPRING 12
Converge Challenge Creating Scottish Entrepreneurs ‘12 Where have all the entrepreneurs gone? We are a country of innovators. Converge Challenge is an opportunity for would be entrepreneurs from Scottish Universities andKey facts: Research Institutes to transform their idea from business plan to fully incorporated company through business mentoring andSince launching in 2010, Converge Challenge hands on training.has become a trailblazer in its field.We have had 80 applications. WHy PaRtNeRING WItH cONVeRGe cHaLLeNGe Is aNWe have trained 50 company founders. OPPORtUNIty NOt tO MIsseD9 companies have been incorporated. As Converge Challenge grows its profile, there is an opportunity for your businesses to8 companies are in process of incorporation. meet its Corporate Social Responsibility goals, raise your company’s reputation, generateAnd we have awarded over £90,000 in cash positive press opportunities and give back toand business support. the Scottish economy.To find out how your business can benefit from partnering with Converge Challenge,please contact Dr Olga Kozlova, Enterprise Creation Manager at email@example.com on 0131 451 3870 or visit www.hw.ac.uk/convergechallenge. Distinctly ambitious www.hw.ac.uk/convergechallenge
NEWS SPRING 12 First minister galvanised in Cumbernauld, Clansman sustains its future, Weir gets bigger revenues, the FSB points to the US and Germany, and Greene King colours the Edinburgh media scene Corporate and Santander UK plc. Salmond shown true colours The renewal ensures STV has facilities that allows the company to focus on securing licence renewal and continued delivery of its growth strategy. George Watt, chief financial officer said: “We are very pleased to have successfully renewed our bank facilities in the current market conditions. These new facilities will provide the group with certainty in the medium to long-term and flexibility to continue to pursue our growth ambitions.” First minister Alex Salmond has launched the £2.5m Colourgalv Centre created by Highland We are very Galvanizers and Colour Coaters at Blairlinn Industrial Estate in Cumbernauld. He was welcomed by managing director Geoff Crowley, pictured left, and chairman Douglas Ashmead. pleased to have The investment sees Highland cement its position as a leading galvanizing and colour powder coating firm. The company employs 59 staff at Cumbernauld and its new centre houses an successfully exhibition centre featuring Colourglav, a hot-dip galvanizing and powder colour coating process which stays colourfast for up to 30 years and protects against corrosion for up to a century. renewed our bank facilities in the Clansman’s £11m The business became employee-owned in current marketrobotic success Clansman Dynamics, a global leader in the late December 2009, realising an ambition by Dick Philbrick to ensure the company conditions design and manufacture of robotic had a sustainable future under employee-handling equipment, announced turnover has ownership. Co-operative Developmentsoared by more than 60% – from £7m to Scotland and Baxi Partnership helped create Linn breaks the £11m – in the two years since the company a funding package to buy the business. sound barrierbecame employee-owned.Founded by Dick Philbrick and two STV renews bank support Linn was winner of the Product ofcolleagues in 1994 and based in East Kilbride, STV Group has renewed its £70m bank the Year award for its new range ofClansman produces sophisticated material facility comprising a £37.5m term loan and DSM Systems at the Scottish Businesshandling solutions for forges, foundries, £32.5m revolving credit and overdraft facility Awards ceremony at Edinburgh’saluminium smelters, waste processing and with December 31 2014 maturity dates. International Conference Centre.manufacturing. Clients include many vehicle The new facility includes a provision for an DSM Systems were introduced inmanufacturers, such as Volvo, Fiat and extension, until March 2016, subject to lender December 2011, building on Linn’s existingKamaz (Russia’s largest truck manufacturing approval and the extension or renewal of STV’s range of digital streaming players whichbusiness). broadcast licences being confirmed prior to make it easy to connect your music aroundClansman exports over 90% of production – December 31 2013. The facility is secured and the home.China accounts for 30% of sales – with Russia is provided by Bank of Scotland plc, Barclaysand India important markets.Clansman employs 38 staff – an increase of For the latest news, analysis and insight on issues affecting Scotland’sfive since the employee buyout – and the business community visit:company is recruiting for additional www.bq-magazine.co.uk/scotland 12mechanical engineers. BUSINESS QUARTER | SPRING 12
SPRING 12 COMPANY PROFILEThe part-time Strathclyde MBA: all the beneﬁts of an MBA without the career break STRATHCLYDE BUSINESS SCHOOL: A WORLD-CLASS BUSINESS SCHOOL ON YOUR DOORSTEPF OUNDED in 1947, the University of beneﬁtting both themselves and their employer. Strathclyde Business School (SBS) is a Students can also choose to do their ﬁnal pioneering, internationally renowned project on a subject or area of business which suits academic organisation that shapes their employer.and develop the business minds of tomorrow. Traditionally, companies tend to sponsorStrathclyde offers the highest quality business employees who are embarking on part time studyeducation and management development for both for the MBA, realising that by doing so they willinexperienced graduates and senior managers. not only be recognising and rewarding a valuableWith experience of offering an MBA for over 40 employee but they will beneﬁt too from theyears, coupled with its triple-accredited status, knowledge the student is gaining by its immediateStrathclyde Business School offers a quality, application in work projects.world-class, learning experience. However, many individuals now fund themselvesStrathclyde is the only triple-accredited business through a part time MBA and working throughoutschool in Scotland and one of a small number the period of study allows the student aworld-wide. Accreditation is an independent and continuous income ﬂow which helps ﬁnancerigorous process that involves assessment of all the degree.aspects of the school and its programmes, carried “I DECIDED TO DO MY MBA AT Strathclyde Business School recognises that self-out by teams of professional assessors assisted STRATHCLYDE AS THE BUSINESS funding can put a strain on ﬁnances and, for thoseby senior management from other management in that category, Strathclyde has a number ofschools. Strathclyde has successfully been SCHOOL WAS NUMBER ONE IN scholarships on offer. This year there are three:assessed and gained accreditation from the three SCOTLAND AND ONE OF THE TOP Female Leader of the Future Scholarshipinternational accrediting bodies – AMBA (UK), SCHOOLS IN THE UK.” Entrepreneurial ScholarshipEQUIS (Europe) and AACSB (USA). Visionary Scholarship MAZ ALKIRWI, SSE PLC, PART-TIME MBA 2009-11The business school also has a reputation for Each scholarship is worth around 50% of the fee,research excellence. Most recently, in the 2008 and speciﬁc details can be found online:Research Assessment Exercise, Strathclyde was work, doing an MBA at the same time as working http://www.strath.ac.uk/mba/scholarships/rated 7th in the UK for its ‘world leading and full-time demonstrates discipline, motivation andinternationally excellent’ research, all of which skills such as time management and team work.feeds back into the MBA teaching process. Students on the part-time programme attendThe Strathclyde MBA can be studied full-time, evening classes throughout three years of study –part-time or via ﬂexible learning - all routes of though it can be fast-tracked over two years - andthe MBA follow the same programme of study but there are also four weekend schools throughoutstudents utilise different study methods to achieve that period. The classwork allows students to meetthe same outcome. Studying for an MBA part and work with other fellow professionals from For general information on the Strathclyde MBAtime is a perfect way of gaining this prestigious different areas of business and many of those who please contact us at:qualiﬁcation without sacriﬁcing have completed their studies via the part-time Marketing and Student Recruitment, Universitycareer and ﬁnance stability. route point to the interaction with fellow students of Strathclyde Business School, 199 CathedralPart-time study is ideal for those who wish to as one of the beneﬁts of this means of study. Street, Glasgow, G4 0QUprogress in their chosen ﬁeld or move into another Part-time study also allows the student to Telephone: 0141 553 6118/6119area of business or want an understanding of all implement the skills and theories learned in the Email: SBS.firstname.lastname@example.org 13aspects of their business. While it may be hard classroom direct into their work environment, www.strath.ac.uk/business BUSINESS QUARTER | SPRING 12
NEWS SPRING 12 FSB points accusing finger The five main UK banks reported that they had Weir posts record results at bank lending missed their Project Merlin lending targets to The Federation of Small Business (FSB) in SMEs by more than £1bn. The coalition Scotland points to Germany and the United government’s Project Merlin arrangement States in highlighting the weaknesses in the required the UK’s five largest banks – HSBC, UK banking model – where a few large Santander, RBS, Lloyds and Barclays – to make financial institutions offer limited discretion to it easier for small businesses to access credit. local decision-makers. The banks were also bound to an agreement An FSB report notes that between 2007 and to lend £76bn to small firms but only managed 2010 there was a 24% fall in the number of £74.9bn during the last 12 months. successful loan applications for small A bank spokesman blamed the shortfall on businesses in the UK, compared to only a 9% a lack of demand from small businesses decrease in Germany. Their report also points and described the market for credit as to the United States and notes that the US “remaining weak”. Weir Group, the Glasgow-based global Government’s Small Business Administration’s “The truth of the situation is that small engineering solutions provider to the government-backed loans for small businesses businesses cannot access funding atmining, oil and gas and power markets, have been a key plank of its economic competitive rates from the banks and so arereported record results for the year ending recovery plan. resorting to personal savings,” said Gary DavidDecember 30 2011, with revenue up 40% Andy Willox, the FSB’s Scottish policy convenor, Smith.and operating profits up 33%. said: “For years, the FSB in Scotland hasChief executive Keith Cochrane, above, warned that the dominance of two banks in The truth of thesaid: “Weir achieved in 2011 its stated the Scottish business banking market couldambition of doubling 2009 profits by 2014. harm effective competition – and as situation is thatThis excellent performance was due to theability of the group to execute effectively consequence – the country’s prospects. As a matter of urgency, we need to develop more small businessesour growth plans in positive conditions inour principal end markets. We also alternatives that operate within Scotland to the high street banks so that growing small cannot accessprogressed our strategic agenda with new businesses can drive the recovery and create funding atproduct introductions, two acquisitions the jobs the country needs.”which further increase our exposure to fast Meanwhile two thirds of small- to medium-size competitive ratesgrowing markets and revenue growth fromorganic initiatives.” enterprises did not seek outside sources of finance last year and relied on the personal from the banksThe order input was £2,467m, up 30% savings of business owners and entrepreneurs.from £1,896m, while revenues were “It is extremely difficult to gain adequate Core score on mediation£2,292m, operating profits were £413m finance from the banks to meet growthand operating margin was 18%. Profit targets,” said Gary David Smith, co-founder Core Solutions Group, Scotland’sbefore tax was £396m – up from £295m. of Prism Total IT Solutions. which supplies leading mediator service, led by Dr JohnNet debt increased from £284m to £673m IT support to over 1,000 SME’s nationwide. Sturrock, reported significant growth into fund the acquistions. The highlights “Many SME’s are not growing as they 2011, its tenth anniversary year. Turnoverincluded a record performance in the should do because they do not have capacity expanded by nearly 15% and mediationmineral, oil and gas divisions with on demand. days increased by just under 30% to nearlyupstream oil and gas revenues doubling. “Using the personal savings of the business 100. Work with UK Sport in the run-up toThe full-year dividend was increased by owner as working capital is always going to be the Olympics, with the London and Welsh22% to 33p. an unsustainable strategy – except in very Assemblies and with many other publicWeir’s acquisition of Seaboard in December exceptional circumstances.” and private sector organisations2011 – a US manufacturer of wellhead The report, by Bibby Financial Services, emphasised the strength of Core’ssolutions – has helped broaden the surveyed 450 business owners and the increase offerings. Research suggests that conflictfootprint in upstream oil and gas markets, in companies saying they did not request costs UK business more than £30bn a year,while the acquisition of Novatech, external capital rose by 11% from the 2010 takes up more than 20% of leadershipcompleted in February, will enhance the figure. Personal savings became the most likely time and results in the loss of 370 millionhydraulic fracturing pump portfolio. source of working capital for these businesses working days. 14 in the final quarter of 2011 said Bibby’s report. BUSINESS QUARTER | SPRING 12
It’s the bottom line that counts. So we know that you need your people focused on driving the businessonwards and upwards. That’s why with SystemCare you know your IT is working hard. Working hard for yourteam. Monitoring. Troubleshooting. Fixing. Reporting. Providing security. Maximising productivity. Whenyou need information, SystemCare delivers direct to your inbox. And it’s backed by hundreds of techniciansat the TSG Operations Centres throughout the country. If you already have SystemCare, it’s time to thinkabout an upgrade. If you don’t, it’s time you caught up with the next generation of IT. www.tsg.comSystemCareWhen IT worksyou notice thedifference IT makesThe future of IT Support SystemCare just got even betterNew to SystemCare is Live Connect - this technology More monitoring – over 100 elements of your systemallows our experts to connect to your system and More reporting – over 40 reports availabletroubleshoot problems in the background, leaving you More automated fixes – over 100 scriptsto get on with your work. Use your smartphone to scan this code and find out more.
NEWS SPRING 12 VIP open day for FNZ MMS steers Peacocks deal Bank spends on 36 deals FNZ, the provider of integrated wealth One of the biggest deals of the year so far management platforms, was joined by Alex The Scottish Investment Bank invested involving a Scottish business – theSalmond, Scotland’s first minister, to open its £7.6m in 36 deals between September acquisition of Peacocks by Edinburgh Woollennew headquarters at Tanfield, Edinburgh. FNZ 30 and December 30 2011, leveraging Mill – was advised by Maclay Murray Spenshas growing significantly since it moved to £20m of additional investment from the LLP. The MMS corporate team steered theScotland in 2005, with funds under private sector. acquisition by the Langholm-based businessmanagement increase by 40% and revenues This included support from SIB’s Scottish – owned by entrepreneur Philip Day – of someincrease by 61%, over the year alone. FNZ is Venture Fund which invested in Edinburgh- 338 stores from Peacocks to a successfulusing this boom in business to create jobs for based life sciences company NuCana conclusion, following the collapse of theUK graduates at its Edinburgh headquarters. BioMed Ltd. fashion retailer in January.Over 20 graduates have been joining the The SVF investment was part of a £6.7m Michael Hughes, a corporate partner and headcompany during the first quarter of 2012, in Series A funding round. The deal was led of corporate recovery and insolvency, led theaddition to the 213 new starts in Edinburgh by Sofinnova Partners with Morningside team which completed the transaction. Thesince January 2010. Ventures and Alida Capital International acquisition sees more than 6,000 jobs savedChristian Dougal, FNZ Director said: “Despite investing alongside the SVF. and includes 57 concessions and threereports of the worst economic slowdown in Meanwhile, more than 1,000 jobs are to distribution centres, as well as the firm’sdecades, at FNZ we’re seeing tremendous be created thanks to over £12m of head office.growth. Recruiting from the large pool of Regional Selective Assistance funding. RSA Cardiff-based Peacocks was unsuccessful inhighly talented graduates in the UK means we grants were accepted by 20 businesses restructuring its debt in January, which led tocan support our client base with some of the between October and December 2011. the appointment of KPMG as jointbrightest young people around, while helping The funding will support planned administrator. The value of the transaction hasthem gain the skills and experience for a investment of over £62.8m, creating and not been disclosed, and EWM is working onsuccessful career in financial services.” safeguarding 1,007 jobs. plans to reopen more Peacock stores. The biggest award of £5.2m was made to Infiniti in drive for Michelin Tyres plc in Dundee, followed by a Beer cheer for North Star £2m award for Stirling-based Superglass Scottish leather Insulation Limited. North Star Advertising, the Edinburgh- Bridge of Weir Leather Company has based media agency, has won a £4m been chosen as the interior material account handling Greene King beers and supplier of choice to the acclaimed Infiniti Gael force in Middle East brands division. The agency, which already Emerg-E concept car, revealed at the East-Kilbride based software and handles Belhaven Best, and will now add Geneva International Motor Show in technology experts Gael – chaired by Greene King IPA, Old Speckled Hen and Switzerland. former enterprise minister Jim Mather – has Abbot Ale to its roster. Dom South, Greene Bridge of Weir has supplied two grades of expanded in the Middle East by signing a new King marketing director said, “Given the soft leather – in black and metallic partnership agreement with US supply chain plans for the coming year, we felt that champagne colours – to adorn the interior solutions giants, Inventory Locator Service. North Star would provide the kind of edges of the premium Japanese car. As a The deal, worth £500,000 a year , will see all-round media delivery, thinking and zero-emissions plug-in hybrid, the Gael represent the ILS operation with clients single-mindedness that would best suit low-carbon ethos is shared by both Infiniti across the Middle East region and will create our needs.” and Bridge of Weir. new jobs in both the Middle East and in Nick Stewart, managing director of North Scotland. Gael has an established operation in Star, said: “This is obviously a fantastic win Dubai servicing the aviation marketplace and for us. Greene King is a great client and Leading law firms merge has a wide range of customers utilising the has some great brands, with a great Charlotte Square, Edinburgh, legal firm Fyfe company’s Q-Pulse software application to heritage. It’s recognition of the great work Ireland has now merged with Tods Murray manage aviation safety and quality the guys have done on Belhaven.”LLP to create one of the strongest private management. Gael, established by Donald Founded in 2008 by Stewart, Barry Fearnclient teams based in Scotland. Fyfe Ireland Maciver in East Kilbride in 1992, has grown and Peter Donaldson, North Star’s clientspartners, Greig Honeyman and Drew Taylor, turnover to more than £8m. The company include the National Galleries of Scotland,along with eight solicitors and six support announced a new Q-Pulse/iPad deal with the RA, Genius Foods, Apex Hotels andstaff, joined Tods Murray in January. The General Civil Aviation Authority in the United Stevenson College. 16combined firm is known as Tods Murray LLP. Arab Emirates at the Dubai Air Show. BUSINESS QUARTER | SPRING 12
SPRING 12 COMPANY PROFILEThe Royal Yacht Britannia hosted the recent BQ Live Debate with focus on ‘women inthe boardroom’ (see pages 44-49). This former ﬂoating royal residence is now one ofthe UK’s most prestigious ﬁve-star corporate event venues in addition to an award-winning visitor attraction by day. However, for many world leaders, ‘Britannia’ hasalways meant ‘business’… THE ROYAL YACHT BRITANNIAA S well as hosting royal banquets and receptions, Britannia was an ambassador for the UK, promoting trade and industry around the world.From New York to Sydney, The Queen’s guests wereentertained as if they were at one of the royalpalaces. The Royal Yacht was involved in numeroustrade missions and an invitation on board for whatbecame known as ‘Sea Days’ was very much soughtafter by the world’s business and political leaders.Today the tradition continues and Britannia offersa unique opportunity for corporate clients tohost exclusive dinners and drinks receptions inthe impressive State Apartments. And, as guestsat the recent BQ Live Debate experienced forthemselves, the meticulous attention to detail andhighest royal standards for which Britannia wasrenowned are still rigorously adhered to today.From the artistic canapé creations and artisanbreads, to delicate hand-made petits fours, allfood is created on board by Executive Chef,Mark Alston, and served by Britannia’simmaculate butlers.Complete privacy and discretion are assured andevery last detail is catered for by a dedicatedEvents Manager, allowing guests to concentrateon the business at hand.As the Commonwealth prepares to celebrate theDiamond Jubilee, where else could be more ﬁttingto host your event than The Queen’s former RoyalYacht Britannia. For further information on hosting the event of a lifetime on board Britannia, please call the events team 0131 555 8800 or email email@example.com The Royal Yacht Britannia Ocean Terminal, Leith, Edinburgh, EH6 6JJ 17 www.royalyachtbritannia.co.uk BUSINESS QUARTER | SPRING 12
NEWS SPRING 12 BQ people on the moveStuart Johnston has been appointed a Spens LLP as a litigation partner, boosting its £2.5bn equity investment capital fund backedpartner of DM Hall. A graduate of Aberdeen ten-strong construction and engineering team. by five of the largest banks in the UK. MunroUniversity, he has worked in professional The move is the firm’s sixth partner built his career with RMD, JP Morgan,practice for many years, latterly at CBRE, appointment in three months, with Scott Simmons and Lime Rock where he was abefore joining DM Hall in 2010 as a director moving from McGrigors, having spent ten partner and managing director.overseeing the growth and expansion of the years with Clifford Chance in London andoffice in the North-east. Hong Kong. Paul Hatton has joined Exova, the global testing business as sales director. He wasJulie Grieve has been appointed as Genevieve Shore has joined the board of previously with Flextronics Global Services as amanaging director of Braemore Property STV Group as a non-executive director – Business Unit Director. Stuart Neill is alsoManagement, part of Lomond Capital. She replacing Matthew Peacock, who served since joining as global communications managerwas previously managing director of Abbey February 2007. Shore sits on the management from the Scottish Government.Business Centres. board of Pearson plc, reporting to Marjorie Scardino, as chief information officer and David Birrell has become the new chiefGlen Gribbon has been appointed director director of digital strategy of Pearson. executive of Edinburgh Chamber ofof iconic brand The Famous Grouse at the Commerce. He joins from McCurrach GroupEdrington group. He joins from Vets Now Gordon Scott has joined Barclays Wealth in where he was group strategy director,where he was managing director, having Glasgow as a new director, arriving from following a long and successful career withbuilt his career with Whyte Mackay, Kleinwort Benson. His appointment follows a Unilever.Colgate and Mars. period of growth for Barclays Wealth, headed by Craig Jamieson, which provides bespoke Alastair Young has joined Gordon Iain Malloch, head of mortgages for Lloyds financial services to high net worth clients in McPhail, the leading malt whisky specialist andTSB Scotland, has been appointed chairman of Scotland. Scott served for three years as head owners of Benromach, as financial director. Hethe Council of Mortgage Lenders Scotland, of private wealth management at Kleinwort spent the bulk of his career with BAT Industriessucceeding Jim Dunn of the Scottish Building Benson where he was a senior figure in the in a number of roles around the world.Society. He joined TSB in 1983 and is a Fellow Scotland team.of the Chartered Institute of Bankers. Lindsay Dixon is the new group financial Lisa Murray is now heading up the Scottish controller of The Weir Group plc. She joinedWendy Ferguson, a former Management branch of Ad Hoc Property Management, a from Johnston Press plc.Today Woman to Watch, has been appointed Dutch company building a presence inhead of financial services for Grant Thornton Scotland. Murray, originally from Skye, joins Senergy, the rapidly-expanding global oilScotland, to head up the firm’s newly after more than three years as sales and service business has appointed Mikeestablished Business Risk Services team, with marketing manager for a self-build timber McEwan as VP Finance. He was previouslyanother high-level appointee, Leigh McLuskey, frame company. European finance director of architects RMJMwho helped set up Grant Thornton’s Business and finance director of Miller Construction.Risk Service in London. AWD Chase de Vere, the national firm of independent financial advisers, has appointed Scottish Salmon farming company Loch DuartBrian Milne, a former Deloitte director, has Paul Fox as private client advice manager for has appointed Simon Maguire as financialbeen appointed a partner in mid-tier the north, which includes offices in Glasgow. director. He joins from Shanks Wasteaccountancy firm French Duncan’s business He will report to chief executive Stephen Management.recovery practice. An insolvency practitioner, Kavanagh. Fox has 32 years industryMilne has been a director at Deloitte since experience, most recently as a director at LEBC Fiona Whittaker has been appointed as2005, prior to which he was a senior manager and head of corporate clients at Origen. head of learning and development forat PwC. FirstGroup, the world’s largest surface Simon Munro is the new Scottish director transportation company. She was previouslyDavid Scott has joined Maclay Murray and for the Business Growth Fund, the major new with RBS, GSK and BP.If you’d like to include someone on the move, please email firstname.lastname@example.org BUSINESS QUARTER | SPRING 12 18
Business interests across Scotland,North East, and Yorkshire?Subscribe to BQ!One business magazine- 3 regional editionsProviding the inside track on what drives leadingbusinesses and business people, BQ offers a uniqueand refreshing mix of business news, commentary andprofiles of the most inspirational entrepreneurs acrossthe North East, Yorkshire and Scotland. Published inthree separate editions with content unique to eacharea, BQ aims to get to the heart and soul of businesspeople to find out what drives, inspires and motivatesthem towards their ambitions. Each quarter BQ alsobrings its readership a wealth of regional business www.bq-magazine.co.uk ISSUE SEVEN: SPRING 2012intelligence and information, whilst looking ahead toforthcoming events and reporting on recent SERIOUS TRUFFLE MAKER The Highland Chocolatier’s sweet Perthshire successdevelopments that will have a significant impact on A £12.5BN GAMES CHANGERthe business landscape. Baroness Ford’s regeneration project aims for Olympic gold THE WINNING YEARS why Mike Cantley on the what, the how and the BQ LIVE DEBATE Women in the boardroom QUAY OF LIFE Charan Gill ﬁnds life after Ashoka and spiritual www.bq-magazine.co.uk ISSUEELEVEN:WINTER2011 www.bq-magazine.co.uk ISSUESIXTEEN:WINTER2012 contentment in Rajasthan and... Musselburgh access to finance Banksaren’tlending.Yestheyare.ABQ2specialreport a force in the air BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS TheaviationcompanyonthestandatDurhamTees Valleywithitsthrustonrunwaysworldwide kitchen for more Simplisticmanufacturingandcontinualimprovement going for it SirPeterVardyonsweepingfloors,strippinggearboxes worth an investment andbuildingoneoftheregion’smostsuccessfulgroups Corporate a Downturn?Whatdownturn?Shopflooropinionsays Yorkshirebusinessistoughbuthealthy–andready ‘a good eye is my forte’ Themodern-dayStephensonwhoreachedNumber10 good for the long term –andmadesurehisstaffsharedtheexperience nd ThecarehomesectorcoulddowithfriendslikePhilipBurgan live debate a clear view Winningfinanceforgrowth–isitpresentation,blackart, Individual p orgood,old-fashionedbusinessopportunity? MarkJNelsonhasdevelopedtheartofkeepingfocus–in the £3.92bn drive ackages morewaysthanone–andintendstomakeacleansweep TourismintheNorthEastisourmostlucrativeinward BUSINESSNEWS:COMMERCE:FASHION:INTERVIEWS:MOTORS:EVENTS investment,buthowdoweholdontothoseintheknow andseducethosewhoaren’t?Meetamanonthecase available fro BUSINESSNEWS:COMMERCE:FASHION:INTERVIEWS:MOTORS:EVENTS m only SCOTLAND EDITION £14.95 The new indispensible online companion to BQ. Register now. www.bq-magazine.co.uk/scotland YORKSHIREEDITION NORTH EASTEDITION Business Quarter Magazine £2.95 Business Quarter Magazine £2.95 Business Quarter Magazine £2.95BQ_MAG_FRONT.indd 1 04/01/2012 15:34 BQ_MAG_FRONT.indd 1 06/03/2012 11:13You can subscribe to BQ Magazine each quarter ensuring you receive your copydirect. There are a number of subscription packages available to ensure best valuefor you and your business.To place your order visit www.bq-magazine.co.uk/subscribeBQ is no ordinary business publication. With unique content and a style determinedly its own, its aim is toinspire, enlighten and empower, embracing and reporting business success wherever it is found. Order yourcopies today to ensure you don’t miss out.
AS I SEE IT SPRING 12 Get your internal engine in right gearEdinburgh-based David Reynolds, the current president of the Chartered Institute of Internal Auditors in the UK, says business success over the long term depends on greater attention to the risks that are inherent in all kinds of organisationsEvery business faces some kind of risk to its sexual discrimination, bullying, theft and for an inquiring and intelligent person willingfuture. Of course, there are risks that you bribery and corruption. to maintain high levels of independence andsimply can’t predict, such as the Japanese Even in our public sector there are massive integrity.earthquake, the tsunami and its impact on the every-day risks. For example, Falkirk Council As a professional body, the Chartered Instituteglobal nuclear energy industry, iPad production has taken a more determined look at its own of Internal Auditors, which was granted a– and those that you can. And we can see internal business matters because it felt its royal charter in October 2010, hasplainly what happens when companies procurement organisation risked being a been supporting internal auditors to raise don’t pay proper heed to the risks that they target for organised criminal activity. Working the bar in both private and public companies.can influence. with the Scottish Crime and Drug Enforcement One strategy for the institute is to attractThe fallout from Scotland’s banking crisis has Agency, Falkirk has updated it response to new talent to the profession and charteredthrown up some perplexing questions about criminal activities. They are to be applauded status with advanced diplomas in internalrisk, proper procedures and vital questions that for this course of action. audit practice and management highlightsenior board figures failed to ask, while the Over the last few years, the critical roles of the our commitment to ongoing training andsad saga of the events at Rangers (I’m a Partick internal auditor have come into much sharper practical learning.Thistle fan, born in Glasgow, and now living in focus in such areas. The valued internal auditor With a longer-term perspective, the institute’sEdinburgh) show that some senior board-level has a unique place in any company to test the strategy is to raise the profile of the professionpeople at the football club were not looking controls that are in place and see if they are and increase influence and engagement with ahard enough at all the levels of risk. robust enough. It’s a highly rewarding career range of stakeholders, but particularly policyEven today’s entrepreneurial businesses mustconstantly assess where things are likely to One of the biggest challenges ofgo pear-shaped. Ask yourself; does yourbusiness have a code of ethics that everyone the financial crisis has been in thehas signed up to?Because, in most places today, this is boardroom, which must be more robustbecoming mandatory – and you need to spendtime explaining why you have such a code when scrutinising business risks 20over the use of IT, mobile phones, gender and BUSINESS QUARTER | SPRING 12
SPRING 12 AS I SEE ITA good internalauditor has to bevisible from topto bottom in anorganisationmakers, regulators and standards within an organisation, and to do that wesetters. The institute’s efforts need to be informed and knowledgeableto build closer relationships about our organisations and how thewith heads of internal components knit together from an internalaudit to understand control and risk management perspective.their needs better is The institute’s efforts in increasingalso a key in engagement are helping to provide a strongersupporting the voice for internal auditors, which in turn willbuilding the profession. allow businesses to gain an incisiveOne of the biggest challenges of the commercial edge. We know that morefinancial crisis has been in the boardroom, productive engagement with heads ofwhich must be more robust when audit and the external auditors andscrutinising business risks. That means consultancies is vital for the growththat non-executive director must have and development of our institute.access to more information from But it will also mean strongerdeeper inside an enterprise. Our companies across the UK whereown recent survey* shows that internally people feel morein 63% of companies only the empowered to challenge pooraudit committee members have – or even corrupt – decisionscontacts with the internal audit when they see them. Theteam. As a consequence, other familiar equation in business isnon-executive directors may be that the higher the risk, themissing a chance to bring their greater the reward, but let’sknowledge and experience to ensure that only sensible andbear on crucial risk issues. While quantifiable risks are taken, not the71% of non-executive directors see reckless sort that has caused sosubstantial scope for improving the much national pain and damage. nunderstanding of risk across theirorganisation. With the help of internal David Reynolds has been involved inaudit, let’s make this happen. internal auditing for 25 years. He wasThe internal auditor has a pivotal role to play director of internal audit and regulatoryin all kinds of companies. While we don’t seek compliance at BT. He is now a director ofthe limelight as practitioners, a good internal US-based consultancy MorganFranklin.auditor has to be visible from top to bottom inan organisation and courageous enough to * The survey can be downloaded freeask the tough questions. Our ambition from http://www.iia.org.uk/is to be the trusted adviser 21 BUSINESS QUARTER |SPRING 12
AdvertorialInsight – the currencyof international tradeBy Ian Collins, Area Director for Bank of ScotlandWhen businesses in Scotland begin to measure turnoverin millions of pounds, it’s fair to say that running them cangenerate a whole new set of headaches.Protecting cash flow from unpredictable foreign exchangefluctuations is one concern which will trouble companies thatimport and export – particularly in these volatile markets.Little growth in the UK economy means revenue generatedfrom fast growing overseas economies is increasinglythe income stream needed to keep a growing businessmoving forward.Yet Bank of Scotland’s own research shows us that only11 per cent of businesses in Scotland plan to protect theserevenues, despite almost a fifth (19 per cent) being active inoverseas markets.With so many other pressures facing the management teamof growing businesses, it isn’t surprising that predicting theebb and flow of foreign exchange rates falls down a list ofcompany priorities.Make revenue protection a priority Ian Collins, Area Director for Bank of ScotlandProtecting your revenue streams and securing your costs whenexporting or importing should make Foreign Exchange Risk Knowing your marketManagement a core part of your strategy. Our recently launched Arena e-solution from Lloyds BankBusinesses of all sizes in Scotland have found a sudden shift Wholesale Banking Markets is designed to do just that.in exchange rates can turn a good contract bad. Reducing the Arena combines foreign exchange and money marketsrisk of that can be addressed with a few simple options: deposit transacting with access to valuable market data and economic insight to help businesses determine the optimum• You may be able to negotiate terms with your supplier time to trade. which allow for adjustments due to currency fluctuations.• Some suppliers may be willing to let you invoice in Arena lets users display only the information they need sterling so that your transaction is only linked to the on their desktops, whether it’s charts of currency markets value of the pound. movements, currency analysis from the Bank’s economists• Try and negotiate terms on a fixed price. or live market news. When they decide to transact they can• If you have a fixed price contract then you need to consider do so easily and quickly on Arena. implementing a Risk Management Strategy to protect your With finger-tip access to all the data, applications and fixed price currency exposure. economic research, Arena helps businesses to manageIf exporting is something you plan to do more of, it is worth FX risk and trade effectively overseas.opening a foreign currency account so that transactions don’t Don’t ignore the benefits of international trade due to ahave to be converted immediately. perception that the rewards are tempered by risk, seekBut there is no real substitute for regional and market insight to help you take the opportunity for expansion intoknowledge. While predicting currency fluctuations might new markets or strike up fresh supplier relationships overseas.be complex, the process of deciding which option suits acompany can be made a lot simpler with some research For help with this, contact your relationship manager orand insight. visit www.lloydsbankarena.com