Tag: business

US trade ‘delivering for Scotland’ as Aberdeen hosts transatlantic dialogue

  • International Trade Secretary welcomes US counterpart Ambassador Tai to Aberdeen to discuss how transatlantic trade is delivering for the people of Scotland and the rest of the UK.
  • Talks focus on key sectors for Scottish economy and bring together iconic Scottish businesses including Walker’s Shortbread and innovative energy SME, Enpro-Subsea.
  • Figures show US investment is supporting over 100,000 jobs and generating nearly £50 billion for the Scottish economy.

The UK will today host the second transatlantic trade dialogue in Aberdeen aimed at boosting our £200 billion trade partnership with the US.

Against a backdrop of Aberdeen’s flourishing tech scene and world-leading energy sector, the dialogue will focus on agreed priority areas including digital and innovation, green trade, supporting SMEs and supply chain resilience.

Latest figures show the importance of transatlantic trade to Scottish workers, businesses and industry:

  • Nearly a quarter of the nation’s services exports are to the US
  • Scotch whisky exports continues to play a vital role in wider UK-US trade, with almost two thirds of beverages exported to the US coming from Scotland
  • The US is Scotland’s number one foreign investor, according to EY
  • US-owned businesses support over 100,000 jobs, generating nearly £50 billion for the economy

The Secretary of State for International Trade Anne-Marie Trevelyan will discuss the importance of trade for creating jobs and spreading economic opportunities throughout the UK – a key part of our levelling up agenda.

The dialogue will convene leaders from across Scottish, central and local government, a wide range of businesses as well as trade unions and civil society groups such as Trades Union Congress.

International Trade Secretary, Anne-Marie Trevelyan, said:  “This dialogue gives us a platform to explore more modern, digital ways of trading. It will identify and resolve barriers to trade to make it cheaper and easier for businesses in Scotland and throughout the UK to do business with our US friends.

“As two leaders in green innovation, it also gives us the opportunity to harness trade to tackle shared challenges such as climate change.

The Trade Secretary met with leaders from Scotland’s food and drink industry including Walker’s shortbread and Clootie McToot last night.

Attendees also included US spirits company Brown-Forman which owns three of Scotland’s top distilleries GlenDronach, Benriach and Glenglassaugh and employs hundreds of people in the UK. The firm hailed the lifting of tariffs on US whiskey thanks to the recent resolution of the S232 steel and aluminium tariffs dispute, and revealed it is now planning a multi-million pound investment in its Scottish facilities.

Ahead of the dialogue, Trevelyan and Tai will visit offshore energy SME, Enpro-Subsea in Aberdeen where Trevelyan will highlight the UK’s energy strategy aimed at securing energy security and independence, while we support the transition from fossil fuels to new technologies. The company demonstrates that achieving our environmental goals must go hand-in-hand with an evolving North Sea industry.

Discussions at the dialogue will provide a solid foundation for further engagement with the US. This includes ongoing work at a state-level such as mutual recognition of qualifications as well as continuing to remove barriers to trade.

The Government has already helped lift the ban on UK exports of lamb and beef and resolved the Large Civil Aircraft dispute, which removed 25 percent tariffs on Scotch whisky, resulting in huge wins for Scottish producers and exporters.

UK Government Minister for Scotland Iain Stewart said: “We’re delighted to host today’s talks in Aberdeen, marking a positive development in our already strong trade relationship with the US. Improving our partnership will create new high-quality opportunities for businesses in Scotland, including from our thriving food and drink, tech and energy sectors.

“At a time when we face immense global challenges, joining with our friends in the US to lift barriers, improve communication and encourage new and innovative ways of working together will support jobs across Scotland and beyond, benefiting businesses of all sizes.”

Shevaun Haviland, Director-General of the British Chambers of Commerce, said: “The UK and US are natural trading partners. These dialogues are an opportunity to build on that relationship and set new ambitious standards on sustainable trade. In a shifting and uncertain world, we must also take this opportunity to reinforce the resilience of our supply chains and stabilise prices.

“Smaller businesses make up the majority of our membership, and the UK economy, so it’s vital they are given a voice in these talks and that they get to reap the benefits on both sides of the Atlantic.

“Supply chain disruption and soaring inflation have reduced the operating margins of many small firms to almost nothing, so reducing the costs of trade with the US would be a huge boost for them. This would then help communities right across the UK to see the benefits that improved trade with the US could bring.”

Allan Hogarth, Executive Director of the Scottish North American Business Council (SNABC) said: “The SNABC is very much looking forward to participating in the Aberdeen session of the Transatlantic Dialogue, building on the success of the Baltimore session last month.

“These discussions will cover vital areas to the Scottish, UK and US economies – it is a great opportunity to make sure Scottish voices are heard on this, our single biggest export market, and to try and make it simpler for us all to continue to prosper and strengthen the transatlantic relationship for our mutual benefit.”

According to EY’s Attractiveness Survey Scotland, June 2021 , the US was the largest contributor of Scottish FDI projects in 2020. The 38 investment projects originating from the US accounted for 35.5 percent of all projects recorded in Scotland in 2020.

Building a tech nation

Investment can help create more high quality start-ups

Work to create the best opportunities for entrepreneurs is helping transform Scotland into one of Europe’s leading economies to start or grow a technology business.

Building on the entrepreneurial ambitions set out in the National Strategy for Economic Transformation, Economy Secretary Kate Forbes said work is underway – backed by £45 million of investment – to help transform Scotland’s tech sector.

During a parliamentary statement Ms Forbes highlighted progress made to date to implement the Logan Review. Actions include:

  • finalising arrangements for five new Tech Scaler hubs, with the potential to create more than 300 high quality start-ups, that will offer mentorship support to budding entrepreneurs. These new hubs, located around the country, will help to ensure new and existing tech innovators have access to high quality commercial education
  • establishing a £1 million Scottish Tech Ecosystem Fund providing support for organisations to deliver meet ups and events which create the best environment for entrepreneurs to succeed
  • investing more than £1 million in new devices and equipment to support teaching of computing science
  • appointing teachers who will drive improvements in equipment and training while sharing best practice
  • allocating £1.5 million for reskilling – including support for those on low incomes to gain digital skills

A Chief Entrepreneur Officer will also soon be appointed in the Scottish Government to help ensure entrepreneurship ambitions are embedded in policy development.

Ms Forbes said: “The Scottish Government is committed to the most radical reforms of the Scottish entrepreneurial system since devolution. Our ambition is to establish Scotland as one of Europe’s leading start-up economies.

“These game changing tech scalers will deliver one of the most sophisticated and comprehensive state-funded environments in Europe for the creation and growth of start-ups.

“Tech scalers will put Scotland on the global start-up map and we will promote their services relentlessly to attract the world’s best talent to scale up their businesses in Scotland.

“A key ambition in our strategy to transform the economy is to help establish Scotland as a world-class entrepreneurial country, founded on a culture that encourages, promotes and celebrates entrepreneurial activity.”

Mark Logan said: “These coordinated initiatives are part of the most significant strategic investment in Scotland’s high-technology industry ever seen in Scotland.

“Together, they create the perfect environment for starting and scaling technology-based businesses, with the many opportunities for our people that will result from that. It’s a very exciting time for the sector.”

From Bad to Worse: Universal Credit families face another income cut

UP TO £660 PER YEAR COULD BE SLASHED FROM HOUSEHOLD INCOME

In a letter to the chancellor last week, the Bank of England stated that it expected inflation to be “around 8 per cent” this spring. With Universal Credit set to rise by just 3.1 per cent in April, families with children on universal credit now face a real-terms cut of around £660 per year, on average.

This is an increase on Child Poverty Action Group’s original analysis which showed a cut of £570, when inflation was expected to be 7.25 per cent.

The £20 cut to universal credit last October plunged out-of-work benefits to their lowest level in 30 years. Latest analysis shows that the picture for families is going from bad to worse.

Without government action, families will be pulled deeper into poverty. Increasing benefits by anything less than 8 per cent risks pushing those with already stretched budgets past breaking point.

Anti-poverty charities wrote to the Chancellor last week calling for a minimum 7% benefits rise:

Prices are rising at the fastest rate in 30 years, and energy bills alone are going to rise by 54% in April. We are all feeling the pinch but the soaring costs of essentials will hurt low-income families, whose budgets are already at breaking point, most.

There has long been a profound mismatch between what those with a low income have, and what they need to get by. Policies such as the benefit cap, the benefit freeze and deductions have left many struggling.

And although benefits will increase by 3.1% in April, inflation is projected to be 7.25% by then. This means a real-terms income cut just six months after the £20 per week cut to universal credit. 

Briefing_UC_Feb_2022_finalDownload

Child Poverty Action Group’s analysis shows families’ universal credit will fall in value by £570 per year, on average. The Joseph Rowntree Foundation has calculated that 400,000 people could be pulled into poverty by this real-terms cut to benefits.

The government must respond to the scale of the challenge. Prices are rising across the board. Families with children in poverty will face £35 per month in extra energy costs through spring and summer, even after the government’s council tax rebate scheme is factored in. These families also face £26 per month in additional food costs. The pressure isn’t going to ease: energy costs will rise again in October. 

A second cut to benefits in six months is unthinkable. The government should increase benefits by at least 7% in April to match inflation, and ensure support for housing costs increases in line with rents. All those struggling, including families affected by the benefit cap, must feel the impact.

Much more is needed for levels of support to reflect what people need to get by, but we urge the government to use the spring statement on 23 March to stop this large gap widening even further. The people we support and represent are struggling, and budgets can’t stretch anymore.

Alison Garnham, Chief Executive, Child Poverty Action Group

Emma Revie, Chief Executive, The Trussell Trust

Graeme Cooke, Director of Evidence and Policy, Joseph Rowntree Foundation

Morgan Wild, Head of Policy, Citizens Advice

Dan Paskins, Director of UK Impact, Save the Children UK

Imran Hussain, Director of Policy and Campaigns, Action for Children

Thomas Lawson, Chief Executive, Turn2us

Sophie Corlett, Director of External Relations, Mind

Dr Dhananjayan Sriskandarajah, Chief Executive, Oxfam GB

Caroline Abrahams, Charity Director, Age UK

Eve Byrne, Director of Advocacy, Macmillan Cancer Support

Kamran Mallick, CEO, Disability Rights UK

Katherine Hill, Strategic Project Manager, 4in10 London’s Child Poverty Network

Mubin Haq, Chief Executive Officer, abrdn Financial Fairness Trust 

Bob Stronge, Chief Executive, Advice NI 

Dr Ruth Allen, Chief Executive, British Association of Social Workers

Joseph Howes, Chief Executive Officer, Buttle UK

Helen Walker, Chief Executive, Carers UK 

Balbir Chatrik, Director of Policy and Communications, Centrepoint

Gavin Smart, Chief Executive, Chartered Institute of Housing 

Leigh Elliott, CEO, Children North East

Niall Cooper, Director, Church Action on Poverty

Lynsey Sweeney, Managing Director, Communities that Work

Anna Feuchtwang, Chair, End Child Poverty Coalition

Claire Donovan, Head of Policy, Research and Campaigns, End Furniture Poverty

Victoria Benson, CEO, Gingerbread 

Neil Parkinson, co-head of casework, Glass Door Homeless Charity

Graham Whitham, Chief Executive, Greater Manchester Poverty Action

Yasmine Ahmed, UK Director, Human Rights Watch 

Sabine Goodwin, Coordinator, Independent Food Aid Network 

Jess McQuail, Director, Just Fair 

Gemma Hope, Director of Policy, Leonard Cheshire

Paul Streets, Chief Executive, Lloyds Bank Foundation for England & Wales

Jackie O’Sullivan, Director of Communication, Advocacy and Activism, Mencap

Mark Rowland, Chief Executive, Mental Health Foundation

Chris James, Director of External Affairs, Motor Neurone Disease Association

Nick Moberly, CEO, MS Society

Anna Feuchtwang, Chief Executive, National Children’s Bureau

Charlotte Augst, Chief Executive, National Voices

Jane Streather, Chair, North East Child Poverty Commission

Tracy Harrison, Chief Executive, Northern Housing Consortium

Karen Sweeney, Director of the Women’s Support Network, on behalf of the Women’s Regional Consortium, Northern Ireland 

Satwat Rehman, CEO, One Parent Families Scotland

Mark Winstanley, Chief Executive, Rethink Mental Illness

James Taylor, Executive Director of Strategy, Impact and Social Change, Scope

Irene Audain MBE, Chief Executive Scottish, Out of School Care Network

Steve Douglas CBE, CEO, St Mungo’s 

Richard Lane, Director of External Affairs, StepChange Debt Charity

Robert Palmer, Executive Director, Tax Justice 

Claire Burns, Director, The Centre for Excellence for Children’s Care and Protection (CELCIS)

The Disability Benefits Consortium 

Dr. Nick Owen MBE, CEO, The Mighty Creatives

Peter Kelly, Director, The Poverty Alliance

Elaine Downie, Co-ordinator, The Poverty Truth Community

Tim Morfin, Founder and Chief Executive, Transforming Lives for Good (TLG)

UCL Institute of Health Equity 

Dr Mary-Ann Stephenson, Director, Women’s Budget Group 

Natasha Finlayson OBE, Chief Executive, Working Chance

Claire Reindorp, CEO, Young Women’s Trust 

Businesses in Scotland are also calling for the Chancellor to announce new measures to help with rising costs ahead of his Spring Statement tomorrow, according to a recent survey from Bank of Scotland.  

As inflation hits the highest levels seen since 1992, over half (55%) of Scottish businesses said that direct help with energy bills and rising costs tops their wish list for the Chancellor. This was followed closely by calls for a reduction in VAT, cited by two-fifths (40%), while almost a quarter of firms (23%) want increased funding to help create new jobs and develop skills. 

Rising prices remain a key challenge for business. Almost half (46%) of respondents said they are concerned about having to increase the costs of goods and services and over one in ten (14%) stated that inflation is reducing profitability. Almost one in ten (9%) said rising prices had caused them to worry about having to make staff redundant and a further one in ten (9%) were concerned about not being able to pay their bills. 

To help specifically with rising prices Scottish businesses are asking the Chancellor for a VAT reduction (46%), while a third (35%) have called for grants to cover rising energy costs. A further quarter (23%) called for grants to support investment in energy saving measures. 

The data comes as businesses face continuing supply chain challenges, which are reducing the availability of stock (40%), causing hikes in freight costs (39%) and disruption through Rules of Origin and VAT requirements from EU suppliers (33%).

Fraser Sime, regional director for Scotland at Bank of Scotland Commercial Banking, said: “Rising prices are causing multiple challenges for businesses across Scotland and the pressure from inflation shows no sign of abating in the near-term.  

“As we wait for the Chancellor’s Spring Statement, we’ll continue to remain by the side of business in Scotland and support the country’s ongoing economic recovery from the pandemic.” 

Responding to the ONS public sector finances statistics for February  Chancellor of the Exchequer, Rishi Sunak said: “The ongoing uncertainty caused by global shocks means it’s more important than ever to take a responsible approach to the public finances.  

 “With inflation and interest rates still on the rise, it’s crucial that we don’t allow debt to spiral and burden future generations with further debt.”

 “Look at our record, we have supported people – and our fiscal rules mean we have helped households while also investing in the economy for the longer term.”

All will be revealed when the Chancellor delivers his Spring Statement (Budget) at Westminster tomorrow.

North Berwick High School team are runners up in national business investors competition

Senior pupils from North Berwick High School have been named as runners up as part of a competition to find the most promising next generation of business investors.

The young women, aged 16-18, were recognised in the Growing Future Assets Competition, a contest to nurture future female investment experts and encourage them to consider a career in the industry. 

But the winning teams faced tough competition to triumph in the finals, with entries up by a record-breaking 300% this year.

The girls from North Berwick High School were runners up in the senior 16 -18 age group category, winning £500 for the school and £100 of vouchers each.

The team from Lochaber High School in Fort William won the senior competition collecting £1000 for the school and £200 of vouchers of the students’ choice for each team member.

North Berwick High School team members Bethan, Marcia and Keira say: “We really enjoyed getting an insight into the world of investment and are inspired to continue to find out more.

“Working closely with our mentor Amanda was massively helpful, she supported us with the financial aspect of the competition and gave great presentation tips, which will give us a competitive edge in our future careers.

“The Growing Future Assets Competition has given us unparalleled knowledge which we otherwise wouldn’t have had, and we would encourage young people curious about business and finance careers to get involved in the future.”

In the 13-16 year category, the team from Larbert High School, Falkirk, came out top and runners up were girls from Bishopbriggs Academy, East Dunbartonshire.

Financial educators Future Asset believe that being female should never be a barrier to progressing in a chosen career and the contest introduces senior schoolgirls to potential careers in investment, demonstrating how working in the sector can change the world for the better and give young women valuable, transferable skills.

Business Education teacher for North Berwick High School, Hannah Fox says: “The competition offers more than a chance to gain an insight into the investment industry via task completion, it opens doors to valuable industry mentors and opportunities for work place visits.

“It is genuinely the most valuable educational competition I’ve worked on and would not hesitate to recommend it to educational peers.”

During the competition youngsters had to prove their ability to spot the next big investment prospect by researching, analysing and pitching a company, from a selection of 38 businesses, they considered a great long-term venture.

The North Berwick High School team alongside two other teams pitched renewable energy company Ørsted, the fourth picked Accsys Technologies which produces high-performance building material from renewable wood sources. All considered environmental sustainability of central importance.

Mairi Dudley, Head of UK Market Development at Ørsted, said: “We are honoured to have been chosen by so many of these high-achieving girls as their investment of choice. As the world’s most sustainable energy company, we hold social sustainability and inclusion at the highest value.

“Reducing barriers and widening participation in traditionally male-dominated industries is vital for us to keep achieving our goals and protecting the environment. It’s inspiring to see these values held in such high esteem by future generations.”

More than 80 groups, totalling almost 370 girls, took part from all over Scotland. They were mentored by more than 80 investment management professionals offering advice, inspiration and career insights, and supported by teachers.

Fund Manager for Artemis and judge for the Senior competition, Neil Goddin says: “What a fantastic finals day we had; the standard of presentations was extremely high and all the teams, both in the final and the wider competition, should be proud of the effort they put in.

“Watching the confidence and knowledge levels grow through the competition was great to see and I am sure we will see lots of young females joining the asset management in the coming years.”

More than 80 groups, totalling almost 370 girls, took part from all over Scotland. They were mentored by more than 80 investment management professionals offering advice, inspiration and career insights, and supported by teachers.

Chief Operating Officer for Martin Currie, Jennifer Mair says: “Martin Currie recognises the value of a diverse workforce and we partner with a number of organisations to grow diversity in the investment management industry.

“We support Future Asset with their aim of informing female talent about financial services and the range of possible career opportunities in the sector.  We were delighted to act as mentors for and share insights with the team from North Berwick High School.  We are very proud of their achievement in the recent Growing Future Assets Investment Competition.”

Helen Bradley, Future Asset programme manager, says: “The judges were hugely impressed by all the teams. The standard was fantastically high and all the presentations were worthy of industry professionals.

“The winning senior team, Lochaber High School, delivered passion and commitment that the panel felt was unrivalled.”

For more information visit https://www.futureasset.org.uk/

Search on for top green businesses as entries open for VIBES Scottish Environment Business Awards

Entries are now open for VIBES – Scottish Environment Business Awards, and companies across Scotland of all sizes with a green ethos that have demonstrated significant business benefits from good environmental practice are being encouraged to enter.

The VIBES – Scottish Environment Business Awards are a partnership between the Scottish Environment Protection Agency (SEPA), The Scottish Government, Energy Saving Trust, Highland & Islands Enterprise, Scottish Enterprise, South of Scotland Enterprise, Scottish Water, Zero Waste Scotland and NatureScot.

This year’s award categories include: Leadership Scotland, Innovating Scotland, Product Scotland, Service Scotland, Hydro Nation Scotland, Circular Scotland, Moving Scotland, Adapting Scotland, Engaging Scotland, Partnership Scotland, Small Business Scotland.

Businesses in Scotland have already felt the impact of the risks associated with climate change, and food producers and whisky distillers were faced with water scarcity last summer furthering the drive for positive and radical environmental action.

Organisations are being encouraged to follow the example of firms such as Vegware and Paterson Arran Ltd. who have shown that environmental best practice can also bring economic benefits including financial savings, an engaged workforce, positive working culture and improved competitiveness as well as contributing towards a better economy and society as a whole.

Since its inception in 1999, the VIBES Scottish Business Awards, have recognised and rewarded businesses that have championed sustainability by identifying ways to tackle the impact on the planet by reducing consumption on its resources.

This has included everything from increasing recycling and facilitating active travel to reducing consumption of raw materials by adopting a more circular approach.

Bob Downes, chair of SEPA and head of the VIBES judging panel, said: “Scotland is a leader in climate change action and successful businesses recognise the economic benefit from driving environmental innovation and best practice. 

“Every business in the country has a role to play in leading Scotland to Net Zero. The VIBES awards recognise those businesses that are developing sustainable solutions and helping to achieve net zero of all greenhouse gases by 2045. 

“We are looking for entries from businesses who are taking the lead in the transition to a net zero emissions economy through innovation, partnerships, circular economy, adaptation and a commitment to making the environment a key factor in decision making.

“These creative and pioneering organisations will be those who champion best practice and create sustainable goods, products and services through leadership, innovation and ambition, making a positive environmental impact protecting our plant for future generations.”

Finalists will be announced in June.

To obtain an application form please contact vibes@sepa.org.uk.

Businesses have until 5pm on 29 April 2022 to submit their free application.

For more informant on VIBES – Scottish Environment Business Awards, please visit www.vibes.org.uk.

Five-minutes of fame for Scotland’s winning SMEs

  • Prize-winning SMEs to take the stage at Scotland’s national innovation summit
  • The Summit announces new keynote speaker, Mari-Anne Chiromo, Entrepreneur and Business Growth & Effectiveness Specialist

Three of Scotland’s most innovative SMEs have secured a global audience spot at the CAN DO Innovation Summit after entering a competition to appear on the events #SMEstage.

The successful candidates; FC Laboratories Ltd, Cheemia ReSET and Danu Robotics Ltd, will join a host of world-class speakers, addressing an audience of over 800 investors, academics, entrepreneurs and innovators at the third-annual event held virtually on 23rd February 2022.

The competition, open to all small and medium sized Scottish businesses, required applicants to submit a short video demonstrating how their business drives innovation that is creating solutions to society’s biggest challenges.

The three winners were chosen from a wide variety of high-quality submissions and will now claim their prize spot on the Summit’s SME stage and will also benefit from two days of support from an Innovation Specialist at Scottish Enterprise worth £2K to help take their idea to the next level.

This year’s virtual CAN DO Innovation Summit will connect start-ups and SMEs with leading innovators, entrepreneurs, and academics from across the globe to explore new opportunities that marry purpose and profitability. It will feature a speaker line-up of over 40 multi-sector SMEs and a range of innovation support agencies across 12 industry-led panel sessions.

Keynotes, panel discussions and live Q&A sessions will run throughout the day covering practical insights on how people power, combined with the right tech, as well as sustainable and inclusive business practices can accelerate and enable a smoother digital transformation journey for businesses.

Mari-Anne Chiromo, Entrepreneur and Business Growth & Effectiveness Specialist at Apple is the latest name to join the selection of world class keynotes speaking at the event.

Further speaker highlights on the day include:

  • Kate Forbes MSP, Scottish Government
  • Wade Davis, Feminist, Former NFL Player and Educator on gender, race, and orientation equality (consulted with Netflix, Google and Viacom)
  • Gayemarie Brown, Forbes Top 25 Futurist, plus many more.

Delegates from a range of sectors – from fintech and health to manufacturing and the creative industries – have already signed up to this year’s event looking to expand their networks, learn about progressive workplace cultures and business models, and make connections for innovative project collaborations.

Dr Laura Bell of the CAN DO Innovation Summit, said: “Recent social and economic changes have created unprecedented challenges for SMEs and we would encourage them to attend the CAN DO Innovation Summit to be part of our vision of making Scotland a world-leading entrepreneurial nation.

“This virtual focal point for business will help SMEs adopt new technologies, build progressive working cultures and access the right support for innovation-led recovery and growth. We have a wide selection of world-leading speakers lined up for the event, as well as interactive sessions which can benefit SMEs across all sectors.

“I’d like to thank our panel of judges for selecting three excellent winners to take their well-earned place in the spotlight at the summit on the #SMEstage. We look forward to welcoming many more SMEs on 23 February.”

The #SMEstage competition winners were selected by an independent panel of judges made up of Evelyn McDonald, CEO at Scottish EDGE, Enoch Adeyemi, CEO at Black Professionals Scotland and Colin Meager, Innovation Team Lead, Scottish Enterprise.

FC Laboratories Ltd, Cheemia ReSET and Danu Robotics Ltd will appear at the Summit at 4pm to showcase how they are building innovation into their daily practices.

Colin Meager said: “It’s inspiring to see that, despite the economic and societal challenges we are facing, there are a wealth of entrepreneurs and businesses in Scotland using digital transformation to develop new business models and more innovative products and services. 

“Winning the competition will give these businesses access to useful connections and support as well as linking them into invaluable practical support from Scottish Enterprise.”

Early Bird rates are available for a limited time. If you’re keen to attend the Summit but the cost would prevent you from attending, visit the CAN DO Innovation website for info on how to get access.

For more information on the event and to register, please visit: 

www.candoinnovation.scot

Merger creates Capital’s largest digital print and gift producer

Midlothian-based gift and stationery producer Southfield Stationers has merged with Edinburgh digital printer Digital Typeline Publications (DTP).

The newly, merged business will call upon the well-respected market presence of both brands to trade as DTP Southfield and will offer an extensive range of print services to an already wide array of markets.

DTP Southfield will bring together two skilled teams creating an experienced workforce of twenty. DTP Southfield will be moving from the current two locations to the twenty-thousand square feet, old paper mill building at Inveresk Mills in Musselburgh, East Lothian. 

The assistance of East Lothian Council in bringing the business to the area will help facilitate future employment opportunities and other benefits to the local economy.

Alun Joseph, MD of DTP said: “I am excited we have merged with a company we have known and trusted for many years. The Southfield name is well respected in the market and I look forward to taking it forward.

“We will be growing our new facility and product range over the coming months and years while continuing to look after our existing customers with the level of service and all the products they know us for today.”

Family-owned DTP which has over thirty five years’ experience in print, was formed as a high street photo processing lab in 1983 and turned to digital print in 1994. A market leader in digital print service, DTP produces high-quality digital print with the ability to enhance print items with metallic, white and neon pink print as well as bespoke foiling, digital die-cutting and short run creative packaging.

Southfield has been providing a wide range of paper and stationery products for over forty years. For the last twenty its offering of gift items has expanded, making Southfield one of the premier suppliers to gift and craft shops around the UK.

Several customers of both companies have already expressed interest in the new products and possibilities from DTP Southfield. Notably, those in the hospitality sector, gift shops, and artists are keen to benefit from the products now available to them from the company they already know and trust.

Derek Muller, who is standing down as MD of Southfield Stationers, said: “As everyone became tired of seeing the same mass-produced products on display in every high street across the UK, we created a range of high-quality, bespoke giftware for UK retailers.

“We have always provided retailers with products that will stand out from the crowd, and all made in the UK.

“We also work with a lot of artists directly, working closely with them and their original artwork to create beautiful, hand-made gift ranges.

“I am proud of what we have built over the last forty five years and believe that the Southfield name and loyal customers will be looked after and continue to grow in the hands of Alun who will now lead the merged business.”

Recovery weakening as inflation worries soar, says British Chambers of Commerce

  • 58% of firms expect their prices to increase in the next three months, the highest on record. 66% of businesses cited inflation as a concern, also a record high
  • 1 in 4 (27%) firms were worried about rising interest rates, as concerns over rate hikes among manufacturers reach record high
  • Just under half of firms (45%) reported increased domestic sales in Q4, compared to 47% in Q3

The BCC’s Quarterly Economic Survey (QES) – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – has shown the recovery stalled in the fourth quarter, with firms facing unprecedented inflationary pressures.

The survey of almost 5,500 firms showed that some indicators also revealed a continued stagnation in the proportion of firms reporting improved cashflow and increased investment. Inflation is the top issue for firms, while a rise in the interest rate was also a cause for concern for many.

Business activity

45% of respondents overall reported increased domestic sales in Q4, down from 47% in Q3. 16% reported a decrease, unchanged from Q3.

In the services sector, the balance of firms reporting increased domestic sales dropped to +26% in Q4, from +31% in Q3.

In the manufacturing sector, the balance of firms reporting increased domestic sales was +22% in Q4, down from +28 in Q3.

Prior to the surge in Omicron infections, hotels and catering had been most likely to report increased domestic sales (55%). This represented the beginning of a potential recovery as the sector was also the most likely to report decreased sales throughout the rest of the pandemic. 

94% reported decreased sales and cash flow at the start of the pandemic in Q2 2020. Worryingly, a similar decline is now possible in the face of the Omicron variant and the implementation of Plan B which led to new restrictions for some.

Unprecedented Inflationary Pressures

58% of firms expect their prices to increase in the next three months, the highest on record. Only 1% expected a decrease.

The percentage expecting an increase rises dramatically to 77% for production and manufacturing firms, 74% for retailers and wholesalers, 72% for construction firms, and 69% for transport and distribution firms. These are the highest on record.

When asked whether firms were facing pressures to raise prices from the following factors, 94% of manufacturers cited raw materials, 49% cited other overheads, 30% cited pay settlements, and 13% cited finance costs.

When asked what was more of a concern to their business than three months ago, 66% of firms overall cited inflation (compared to 52% in Q3 and 25% in Q4 2020), the highest on record. For production and manufacturing firms, this rises to 75%.

Concerns over higher interest rates rise sharply

The percentage citing interest rates as a concern rose in the quarter. 1 in 4 firms (27%) reported interest rates as a concern, up from 19% in Q3.

The percentage mentioning interest rates as worry among manufacturers stood at 28% in Q4, the highest seen since the metric was first collected in Q4 2009 and up from 21% in Q3.

The percentage citing interest rates a concern among service sector firms stood at 29% in Q4, the highest seen since Q3 2014 and up from 22% in Q3.

Little recovery to Cash Flow

For firms overall, 31% reported an increase to cash flow, while 46% reported no change and 23% reported a decrease.

Given these figures were reported before the full impact of Omicron and the introduction of Plan B, this metric is a cause for concern, as some firms are still struggling to recover from large scale losses incurred since the start of the pandemic.

Most firms still not investing

Investment in plant, machinery, or equipment also continued to flatline in Q4, with 29% overall reporting an increase, while 60% reported no change, and 11% a decline. This was largely unchanged from Q3 and Q2.

Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: “Our latest survey suggests that UK’s economic recovery slowed in the final quarter of 2021 as mounting headwinds increasingly limited the key indicators of activity.

“The persistent weakness in cash flow is troubling because it leaves businesses more exposed to the economic impact of Omicron, rising inflation and potential further restrictions.

“The record rise in price pressures suggests that a substantial inflationary surge is likely in the coming months. Rising raw material costs, higher energy prices and the reversal of the VAT reduction for hospitality are likely to push inflation above 6% by April.

“The notable uptick in concerns over higher interest rates underscores the need for the Bank of England to proceed with caution on further rate rises to avoid undermining confidence and an already fragile recovery.

“The UK economy is starting 2022 facing some key challenges. The renewed reluctance among consumers to spend and staff shortages triggered by Omicron and Plan B may mean that the UK economy contracts in the near term, particularly if more restrictions are needed.

“Rising inflation is likely to limit the UK’s growth prospects this year by eroding consumers’ spending power and squeezing firms’ profit margins and their ability to invest.”

Responding to the findings, Director General of the British Chambers of Commerce, Shevaun Haviland, said:  “Our latest survey paints a challenging picture for the UK economy as we start 2022.

“Many businesses were facing a struggle to improve their cashflow and raise investment even before the Omicron variant surged and Plan B was imposed.

“Supply chain disruption is continuing to persist, inflation is soaring, and rising energy costs are presenting firms with a huge headache.

“With companies now having to grapple with the impact of Omicron and further changes to the rules on imports and exports of goods to the EU, there are significant hurdles for businesses in the months ahead.

“The Government has listened to our previous calls for support, and it must do all it can to steady the ship and steer the economy through these uncertain times. If the current restrictions persist or are tightened further then a more comprehensive support package that matches the scale of any new measures, will need to be put in place.

“The focus must be on creating the best possible environment for businesses to grow and thrive. By supporting firms, they can begin to generate wealth, create jobs and support communities.

“That is by far the best way to sustainably deliver the tax revenue the government needs to support public services and the wider economy.”

Husband and wife team at DM Hall oversee surge in firm’s business sales arm

As one of the few husband and wife teams working in the specialist surveying sector of business sales and valuation with DM Hall, Margaret and Jonathan Mitchell see eye-to eye about their ambitions for their revitalised department.

But there is scope for difference of opinion on some matters. Asked if they take work home to the kitchen table, Jonathan emphatically replied: “Yes!” At the same moment, and equally emphatically, Margaret said: “No!”

The fact that they then both burst out laughing perhaps reflects the comfortable nature of a relationship which is introducing a new dynamism into the Scotland-wide firm’s business sales and valuation department.

Since the Edinburgh-based team took on responsibility at the beginning of the year for the division, which advises clients at national and local level on valuation, sales, and acquisitions, it has boosted both completed and pipeline sales.

The speed at which they have reinvigorated the department – Margaret moved over to the department in March this year and Jonathan returned to DM Hall after several years in the wider UK – has parallels in their own relationship.

They met while working at DM Hall in Fife and, in a classic whirlwind romance, became engaged to be married within 10 days.

“Although our working life might come up as a subject of conversation at home,” said Jonathan, “it is not all-consuming and, certainly in the office and in our dealings with clients, we maintain a strictly professional demeanour.

“But obviously, we know each other well, and that makes it so much easier to work together as a cohesive team, with shared ambitions and aims, for the benefit of our clients.”

Although Scotland is still very much in the recovery phase from Covid, the business sales market is vibrant and continues to display healthy signs of activity and volume, said Margaret.

“Most market sectors, particularly including licensed and leisure, were impacted by the on-off shutdowns over the past year and a half and, now that restrictions have been lifted, there is a surge in turnover since people are just desperate to get out and spend.

“With this sudden profitability, many businesses are refilling their financial coffers and paying back loans, but many business owners are also reflecting on where they want to go in life and concluding that it is a very good time to sell.”

Retirement is a significant driver in DM Hall sales, which tend to specialise in individual businesses, and the department has developed a niche in understanding the emotional bonds which owners build up over decades of business life.

“Many of our clients have invested blood, sweat and tears in the building of their businesses,” said Margaret, “and it can be a life-changing event to have to dispose of it, or hand over to the next generation.

“Part of where we fit is to listen and to understand their concerns. That is a key component of our brand. We provide professional, strategic advice, whether it is selling, buying or valuing, but we also have a comprehensive and detailed local knowledge and an unrivalled network of contacts throughout the country.

“We are not a call centre, with one-size-fits-all responses, and neither are we jacks of all trades. We understand the local market, the integral importance of profit and loss and the professional and personal imperatives of our clients.”

While at the moment in the marketplace willing sellers in search of willing buyers are in the ascendancy, the Mitchells argue that businesses which used the hiatus of the pandemic to refurbish, put training schemes in place, take the opportunity to trim costs and generally put the wheels in motion to reposition their offering will continue to thrive and will see greatest demand if presented to the market.

Meanwhile, despite kitchen table differences of opinion, the Mitchells agree about one thing: that the business sales and valuation department of DM Hall has a bright and sustainable future!

Jonathan Mitchell is an Associate RICS Valuer and Margaret Mitchell MRICS is a Chartered Surveyor in the Edinburgh Commercial office of DM Hall Chartered Surveyors.

For further information, contact DM Hall Chartered Surveyors, 17 Corstorphine Road, Edinburgh EH12 6DD. T: 0131 477 6000. E: edinburgh@dmhall.co.uk.

W: www.dmhall.co.uk.

Twitter: https://twitter.com/dmhallllp

LinkedIn: https://www.linkedin.com/company/dm-hall

Facebook: https://www.facebook.com/dmhallsurveyors/

Instagram: https://www.instagram.com/dmhallsurveyors/

Leith’s Wee Blue Coo ‘moo-ves’ to employee ownership!

A PRINT and design firm based in Leith has rewarded its employees with the keys to the business following their hard work during the global pandemic.

Launched from the living room of couple Bob and Joelle Kirkpatrick in the middle of the 2008 financial crash; Wee Blue Coo Ltd has established itself as a successful business, dispatching thousands of products globally each week and selling its products on multiple online marketplaces.

Bob and Joelle were both made redundant from their jobs in 2006 before setting up their business, creating posters from public domain images to retail on eBay. Fast forward 15 years, they now have a strong team of 30 members of staff – some of which have been employed for more than 10 years – and have an annual revenue of more than £2 million. 

Having previously gifted a 10% shareholding to long term employee Allan Gray for his hard work and dedication, the three shareholders agreed that the move to employee ownership was in line with the company’s values by safeguarding the future of the business for the benefit of its employees.

The entrepreneurs began exploring the succession model in 2019 before enlisting the help of David Morrison of EQ Accountants. The owners began the process of transitioning to an Employee Ownership Trust at the start of 2021 with the move being facilitated by expert Carole Leslie from Ownership Associates as well as the teams at EQ Accountants and Anderson Strathearn.

Bob Kirkpatrick said: “There are perhaps more well-known ways to make an exit from a business, however, this was the only real option to ensure we safeguarded the futures of those who have contributed to our company’s success.

“The Employee Ownership Trust seems like a perfect and logical way to structure any business.”

Joelle Kirkpatrick added: “Being a people led business has always been the very essence of who we are, which is why becoming an Employee-Owned business was the only option that was seriously considered.

“Running our business this way has ensured we have a motivated and dedicated team who feel valued. That has always been more important to us than the bottom line. Relaying this news to our team has, without a doubt, been the highlight of my career so far.”

Bob and Joelle have always sought to take care of their staff with perks such as flexible working and providing private healthcare to all employees with more than one years’ service.

Naturally the couple felt this was the next step for their business. The team were shocked and delighted at the news and are very excited at being given the opportunity to shape the future of Wee Blue Coo Ltd.

Graeme Slater, Warehouse Manager, said: “Now that we are an employee-owned company it means that we all have a say in the direction the company takes in the future.

“This is a great opportunity to help us to grow as a company and offers us the chance to enjoy a more secure and prosperous future.”

David Morrison, Partner at EQ Accountants, said: “Having advised Bob, Joelle and the team for many years, it is great to see them safeguard the future of their business by handing control to their dedicated workforce.

“This is great example of using an EOT as a solution to succession, whilst ensuring that employees are rewarded for their hard work. We look forward to continuing to support Wee Blue Coo as they thrive as an employee-owned business.”

The Employee Ownership Trust was introduced in the 2014 Finance Act to encourage business owners to consider a sale to employees as a feasible succession solution.

Founder of Ownership Associates, Carole Leslie, who has worked on the transitions of more than 80 private businesses to the succession model, said: “We are continuing to see increased interest from a variety of different businesses across contrasting sectors in making the move to employee ownership.

“It is inspiring to see two entrepreneurs succeed in their business throughout the difficulties of redundancy and a global financial crash. It is testament to their hard work that they have reached this momentous milestone.

“Bob and Joelle have always looked to put their staff first, and this transition is another chapter for the couple and the business. I would like to congratulate Wee Blue Coo Ltd, and wish them all the best in their future endeavours.”

Ownership Associates works exclusively within the employee-owned sector, supporting companies on their move to employee ownership and working with established employee owned businesses enabling them to maximise the ownership advantage.

For more information on Wee Blue Coo Ltd, please visit: https://weehappybox.com/

For more information on Ownership Associates: https://ownershipassociates.co.uk/