Scotland’s most profitable family-owned companies have been revealed in a major new report highlighting the impact of family businesses on the economy.
The latest research by Family Business United Scotland and sponsored by Edinburgh’s Carbon Financial shows that the top 100 firms in Scotland collectively generate a combined turnover of £17.2 billion, post £1.2 billion profits and support more than 111,000 jobs.
Paul Andrews, founder of Family Business United, said: “Family firms are really the engine room of the Scottish economy and they provide jobs, revenues and support communities throughout Scotland.
“This report clearly quantifies the importance and diversity of a sector that deserves more support to ensure that these businesses continue for generations to come.
“Their contribution in terms of wealth, incomes and job creation can easily be quantified but in addition, the support that these businesses provide to the communities in which they operate should also not be under-estimated either.”
All of the businesses listed in the Top 100 generate turnover in excess of £25 million which makes them significant businesses, and with Arnold Clark reporting turnover of £3.7 billion the scale of some of these firms can be quantified instantly.
Collectively, the Top 100 family firms in Scotland generate over £17 billion annually, a major slice of national GDP and within this highly successful group of businesses there are over 111,000 employees.
The Top 10 Family Firms In Scotland *
1. William Grant & Sons Holdings Limited
2. Arnold Clark Automobiles
3. The Edinburgh Woollen Mill
4. D.C. Thomson & Company Limited
5. James Jones & Sons Limited
6. Lunar Fishing Company
7. Park’s of Hamilton
8. Balmoral Group
9. R.J Mcleod (Contractors) Limited
10.GAP Holdings Limited
*Based on businesses with a turnover in excess of £25 million per their last set of filed accounts at Companies House, ranked in terms of Profit Before Tax
Scotland’s most profitable family firm is William Grant & Sons, the whisky distiller that was founded back in 1887. It generated a pre-tax profit of £260 million in its last financial year, generated turnover in excess of £1 billion and employed 2,100 staff.
Scotland’s largest family business by turnover, and second most profitable was Arnold Clark, the motor retailer. The business was founded in 1954 by the late Sir Arnold Clark. Turnover in the latest filed accounts was ££3.7 billion generating a profit before tax of £125 million and as business they employ nearly 11,000 people.
The mix of businesses is also of interest as it combines a mix of the traditional industries such as timber and whisky with newer sectors involving technology, pharmaceuticals and renewable energies.
Mark Christie, partner at Carbon Financial’s Edinburgh office, said: “Family businesses are incredible, full of pride, passion and integrity and have a story to tell. Each and every family firm in Scotland has a narrative that helps define who they are.
“Furthermore, family businesses across Scotland deserve more support and to be recognised for what they do. In many cases they take a long term view, investing for the future, and committing to their business in the communities in which they operate so successfully and their contribution needs to be more widely appreciated and understood.”
Two words that can send shivers down the spine of an employer. Vicarious liability. This is a legal concept under which an employer can be sued by a third party for a wrongful act committed by one of its employees. It is often used by parties to get redress for the wrongs which they suffer on the basis that an employer will, in most cases, have deeper pockets than the individual employee who actually committed the wrong.
The law on VL
As one judge once put it, vicarious liability applies:-
“to all acts done within the course of the agent’s employment, however humble and remote he may be from the decision-making process, and even if his acts are unknown to the principal, unauthorised by him and adverse to his interest or contrary to his express instructions, indeed even if they are criminal.”
The upshot of this is that employers often find themselves having to defend claims based on the rogue actions of their staff. In order for vicarious liability to apply, the employee’s wrongful actions must be carried out within the course of their employment. This test has been drawn fairly widely by the courts and, as we will see, can produce some far reaching results. Last month two cases were decided, illustrating the extent of vicarious liability.
Data breach case
Morrisons Supermarkets were sued by various claimants (who were also employees of the chain) after a rogue employee, who had a personal grudge against the supermarket, sent rafts of employee personal data to three national newspapers. He was convicted of fraud and offences under the Computer Misuse Act 1990 and the Data Protection Act 1998. When the claimants sued, arguing that Morrisons was vicariously liable, they won. The court found a sufficiently close connection between this rogue’s conduct and his employment (he was a senior IT auditor). It was held that the guy’s motive (the grudge) was not relevant to the issue of vicarious liability.
X-mas party case
More harrowing is the case of Mr Bellman who sued his employer, Northampton Recruitment Limited. After a boozy office Christmas party, Mr Major, the MD, arranged taxis to another hotel to which a group of employees decanted and continued boozing. A staff member started questioning his employment terms which prompted Major to hold an impromptu gathering of staff where he lectured them about his authority in the business. Bellman challenged him and Major did not like this. He ended up punching Bellman who fell, struck his head on a hard marble floor and suffered permanent brain damage. Bellman sued the company under vicarious liability. He initially lost the case, but the Court of Appeal overturned this and found that the company was vicariously liable for Major’s actions. Relevant factors included (1) that he was the most senior person in the company and the controlling mind (nature of a person’s job); and (2) that he was wearing his MD hat on when he lectured the staff about his authority (sufficiently close connection between his employment and the fateful punch).
Practical tips
It is clearly a very scary concept for employers to be sued for something over which they have no control. I have less sympathy in the Bellman case given that the offending employee was also the MD and owner of the company.
What can employers do to protect themselves?
- Have in place adequate insurance policies – this practical advice was given by the judge in the Morrisons case.
- For breaches of the Equality Act, take all reasonable steps to prevent the offence. Have equality policies, harassment policies, update these regularly, train staff on the policies, and discipline those who breach the policies.
- Bellman illustrates the risks of too much booze at the office do. If you aren’t up for going tea total, perhaps a free bar isn’t the best option.
For information and advice on any matters raised in this article or employment law contact a member of the Blackadders Employment Law Team.
Jack Boyle, Associate Solicitor
Employment Law
Blackadders LLP
@EmpLawyerJack
www.blackadders.co.uk
Projekt 42, a charity aiming to tackle poor mental health in Edinburgh, has joined forces with Queen Margaret University (QMU), Edinburgh, to create a workplace apprenticeship programme with a difference.
Investing in the education and progression of its staff, the charity will not only put two employees through a BA (Hons) Business Management degree at the University, it will also continue to pay staff members over the living wage throughout their studies.
Founder, Sara Hawkins, implemented the programme in a bid to encourage staff to learn new skills and gain the confidence to take on new roles within the charity. Part-time Studio Manager, Daisy Tulloch, and Studio and Activities Manager, Matthew Whale, will be the first employees to take part in the workplace apprenticeship programme this autumn.
Taking place over the course of four years, Matthew and Daisy will attend QMU one day per week, with the remaining time spent on work-based learning. The first time at university for both employees, the business management degree will allow them to develop skills across a variety of areas including: finance; staff management; marketing; business law; organisational behaviour and human resources.
Both Matthew and Daisy initially joined the charity in volunteering roles, before taking on paid roles within the organisation earlier this year.
Commenting on the new workplace apprenticeship programme, Sara Hawkins said: “Through our work with QMU we are now in the unique position of being able to offer staff at Projekt 42 the opportunity to complete a fully funded degree, while still taking home their normal salary.
“Ordinarily these types of work place learning programmes aren’t available to small charities, but with our commitment to upskilling staff we worked closely with the university to create this opportunity for current and future employees. My hope is to continue to work with QMU over the coming years to grow our workplace apprenticeship scheme and create a workforce which is not only highly skilled and motivated, but also feels valued as a result of this investment in their future.”
Dr Andrew Bratton, Programme Leader and Lecturer in the Business School at Queen Margaret University, said: “We are delighted that Projekt 42 is amongst the first group of employers to benefit from the new BA (Hons) Business Management graduate apprenticeship programme. Queen Margaret University is excited about partnering with socially-minded employers like Projekt 42 and I look forward to working with Projekt 42 graduate apprentices to help them grow and develop into effective mission-driven organisational leaders.”
For more information on Projekt 42 please visit www.projekt42.co.uk.
A number of new Trustees have been appointed to Edinburgh Dog and Cat Home, joining the Board of Trustees led by longstanding Chairman David Blaikie and Vice Chair Doreen Graham. Their combined expertise includes government, finance, communications, law, education, property and architecture, covering public, private and not-for-profit sectors.
Publicly announcing the new appointments during Trustee Week 2018, Edinburgh Dog and Cat Home CEO Howard Bridges celebrated the diversity of the Board and their ongoing contribution to the evolution of the Home.
“We are very pleased to welcome our new Trustees to the team. Each of our Trustees brings a wealth of experience to the board and offers invaluable perspective from range of sectors,” he says.
“As a leading animal welfare charity in the UK, Edinburgh Dog and Cat Home must remain at the forefront of first class animal care and rehabilitation, as well as influencing policy and delivering community education. Our Trustees play a vital role in shaping our work at all levels, and we are incredibly grateful for their commitment to our mission of rescuing, reuniting and rehoming lost and abandoned pets from across Edinburgh and the Lothians.”
Edinburgh Dog and Cat Home’s Board of Trustees:
David Blaikie (Chair) – David is an award-winning architect, based in Stockbridge. As the current Chair, he has brought years of guidance and leadership to help deliver the Home’s mission.
Doreen Graham (Vice Chair) – Doreen has an impressive career in third sector communications and PR with organisations including the Scottish SPCA and Health in Mind.
Ian Muir OBE – Ian is a long-standing member of the Home’s board. Not only has he forged an impressive career at Ferranti Edinburgh, but he has held many positions in the education sector, including being a Director of the Association of Scottish Colleges.
Crawford Geddes – Crawford started his property consultancy and property development company, Keiller Edinburgh Ltd in 2002. He cycled to Paris twice to raise funds for charity.
Leanne Goold – Leanne became a Trustee in August 2018 having first volunteered at the Home while at school. She qualified as a Chartered Accountant while working at Ernst & Young in London, before joining Deutsche Bank. Leanne has worked for her current employer, Penfida, since March 2012, and brings a wealth of financial experience to the Board of Trustees.
Sue Stahly – Sue is a senior HR professional with extensive experience at strategic level gained within the drink and finance sectors. She loves animals and has owned a cat as well as dogs, and is currently mum to Stratford, a Hungarian Vizsla.
Catherine Brown – Born and raised in Dundee, Catherine is one of several communications team leaders in the Scottish Government. She has been an enthusiastic supporter of Edinburgh Dog and Cat Home since adopting her terrier cross, Sadie, in 2015.
Peter Proud – Peter is the Founder and CEO of Cortex Worldwide, which has a strategic partnership with Microsoft. An advocate for digital technology, Peter is on both the ScotlandIS Board and Napier University’s Graduate Level Apprenticeship Advisory Board.
Murray Stewart – Murray is a solicitor and notary public, having qualified in Scotland in 2005, and is currently Head of Real Estate at Gilson Gray LLP, one of Scotland’s most prominent law firms. Murray’s family includes two rescue cats Stella and Sakara.
Susan McKenzie – Susan joined the Scottish Wildlife Trust in July 2014 as their Director of Finance and Resources and Company Secretary. Prior to this, she spent 20 years working in the not-for-profit sector. She also volunteers with St Columba’s Hospice and Project Scotland.
David Welsh – David joined the Home’s Trustees this year and is an advocate (Scottish barrister) and the owner of a lively young Westie. He is driven by a passion for animal welfare.
Julie MacDonald – Julie is a lifelong animal advocate with a passion, love, and dedication for animal welfare. Julie is the Senior Fundraising Manager at the Scottish Association for Mental Health, providing exception fundraising leadership to make mental health a priority in Scotland.
Sanjana Rae – In addition to being a solicitor, Sanjana also currently holds the post of Governance and Compliance Manager within Wheatley Housing Group. In her leisure time, she can be found hillwalking and running with her golden doodle Loki.
The Private Client team at law firm Balfour+Manson has been awarded STEP Gold Employer Partner accreditation, in recognition of its specialist skills in inheritance and succession planning.
The firm becomes of only a handful of law practices in Scotland to achieve ‘Employment Partner’ status by STEP, the global professional association for practitioners who specialise in this area of law. The organisation works to improve public understanding of the issues that families face in this area and promotes education and high professional standards to its members.
STEP members help families plan for their futures, from drafting wills to issues surrounding international families, protection of the vulnerable, family businesses and philanthropic giving. Full STEP members, known as TEPs, are internationally recognised as experts in their field, with proven qualifications and experience.
The Employer Partnership Programme (EPP) sets out benchmarks for organisations for employee learning and development to help employers maximise the learning of their STEP members.
The EPP accreditation also confirms Balfour + Manson’s commitment to helping members of its staff gain their individual STEP qualifications, and its aim is for all qualified solicitors within the team to become TEP’s.
Karen Phillips, Partner, Private Client team at Balfour+Manson comments,
“Balfour+Manson being awarded the Gold Employer Partner STEP accreditation is a brilliant endorsement of the firm as a whole, but more specifically our Private Client team. It demonstrates to clients that we offer the highest level of expertise in areas of law that can have a profound impact on their lives.
“We place a huge emphasis on learning and development and helping our own people be the best they can be as they develop their careers. This accreditation is recognition of the supportive culture that exists within our Private Client team and also across the firm. We look forward to continuing to offer opportunities for professional development in association with STEP.”
Jenni Hutchinson, STEP’s Head of Employer Partnerships, commented,
“Balfour+Manson has demonstrated a supportive and encouraging approach to learning and development and we are pleased to see the value it places on staff training. We had no hesitation in recognising these qualities by awarding the firm with a well-deserved Gold Employer Partner accreditation.”
4 days to grab great fares from £5 each way
Bag a bargain Winter Seat Sale. We’ve got 250,000 weekday tickets up for grabs starting at just £5 each way, for weekday travel between 4 January and 1 March 2019 inclusive, including half-term school holidays. But hurry, you only have until midnight on 22 November to book.
So if you’re ready to start exploring the east coast – from London to Inverness, and everywhere in between – book your tickets now and get your 2019 off to a great value start.
Fare examples:
| Origin > Destination | Standard Class Each way |
First Class Each way |
| London to Grantham | £5 | £15 |
| Peterborough to York | £7 | £20 |
| London to Leeds | £10 | £25 |
| Newcastle to London | £15 | £30 |
| Edinburgh to London | £20 | £40 |
SP Energy Networks’ is pleased to announce that its £20m Green Economy Fund is open for a second round of Expressions of Interest.
Hot on the heels of awarding the first £6m from the Fund last week to 13 projects across central and southern Scotland, the Green Economy Fund is now seeking more applicants.
SP Energy Networks is voluntarily contributing up to £20m over a two-year period to support initiatives that will benefit the people of Scotland and support Scotland’s ambitious green energy plans and local economic growth.
We were overwhelmed with the level of interest in the first round and each project which received funding strongly aligned to the aims of the fund and Scotland’s ambitious green energy targets – helping to accelerate a better future, quicker.
Details of the types of projects Round One will be supporting can be found here.
Frank Mitchell, Chief Executive of SP Energy Networks, said: “There are many projects, large and small, which are carrying out innovative and inspiring work to expand Scotland’s green economy and accelerate local economic growth. The Green Economy Fund can provide them with the financial boost required to make great ideas a reality.”
We remain interested in receiving applications from projects that cover a wide geographical area in our operational boundaries.
Please take some time to read through the information on our website regarding the criteria, eligibility and timescales of the fund.
If you would like to submit an expression of interest, or know of anyone who may be interested, please visit our website here and fill out our form.
The closing date is December 7, 2018. Successful EOI’s will be invited to submit a formal application shortly thereafter.
If there are any queries, please don’t hesitate getting in touch to our mailbox greeneconomyfund@spenergynetworks.co.uk
Thank you for your support.
Green Economy Fund
Organisations face an increasing number of threats from ransomware, data breaches and weaknesses in the supply chain, according to the NCSC’s (National Cyber Security Centre) annual report published earlier this year. This has become evident from the recent high-profile attacks on British Airways and Bristol Airport. Such attacks do not only cost money but also do reputational damage.
Ensuring that your organisation is cyber resilient should therefore be paramount. One of the easiest ways to achieve this is to undertake training from industry experts.
What is cyber resilience?
Cyber resilience enables organisations to quickly bounce back after a cyber attack by incurring minimum damage from the attack. This can be achieved through effective cyber security and business continuity practices, which also incorporate cyber incident response management.
Most businesses aren’t however able to pinpoint what ‘good’ security and continuity management looks like, which is why international frameworks have been developed to help provide guidance. Two notable standards for cyber resilience are ISO 27001 (information security management) and ISO 22301 (business continuity management).
Implementing both standards ensures that organisations are not just secure, but also prepared for a disruptive incident, should one occur.
Why is cyber resilience so important to Scottish organisations?
In Scotland, the business case for becoming cyber resilient is even stronger, with the Scottish Public Sector Cyber Resilience Framework aiming to improve cyber security and promote cyber resilience in public-sector organisations. It requires all Scottish public sector bodies to take cyber resilience measures and become ‘exemplars’ in online security. More importantly, public sector organisations must conduct staff awareness training to ensure the whole organisation is aware of their obligation towards cyber security.
Deadlines are yet to be confirmed for Scottish organisations in other sectors, but they too will need to have equivalent measures and controls put in place.
What does cyber resilience training entail?
- Staff awareness
Apart from taking effective cyber security measures, organisations need to also consider the human element of business and this is where staff awareness training comes into play.. According to a Kroll study, in the past two years, the number of data breaches has increased by 75%. Most of these were caused by human error, some of them as simple as sending an email to an unintended recipient – a mistake easily rectified by staff training.
View our staff awareness e-learning courses >>
- Training on cyber security
ISO 27001 is an internationally recognised standard which helps you to ensure best practice and ultimately the confidentiality, availability and integrity (CIA) of corporate information assets and intellectual property.
Our training courses can help you to:
- achieve a solid foundation regarding complying with the standard and achieving best practice
- equip you with the skills to lead an ISO 27001-compliant ISMS implementation project
- or provide you with the necessary skills to conduct second-party (supplier) and third-party (external and certification) audits
Read more about our Information Security training courses >>
Scottish organisations need to establish how cyber resilient they are
IT Governance is an acknowledged leader in Cyber Essentials training, ISO 27001, cyber security, data privacy, service management and business continuity management training.
We now have an office in Scotland, where we can assist local organisations in becoming cyber resilient. We can deliver Cyber Essentials advice and packages, gap analysis, penetration testing and have a range of staff awareness solutions available. Our subject-matter experts are based in our Edinburgh office, where they are waiting to discuss your security concerns.
Learn more about cyber resilience in Scotland >>
Speak to an expert >>
UK trade mark applications originating from Scotland have risen by a quarter in the past year despite Brexit fears – and intellectual property specialist Marks & Clerk has hailed the food and drink sector’s strong contribution.
Recent data from the Intellectual Property Office[1] shows that trade mark applications from north of the border rose from 2,736 in 2016 to 3,417 in 2017 (24.8%), while registrations increased from 2,288 to 2,883 (26%) in the same period.
This represents a significant increase on last year’s figures which saw applications rise from 2,448 in 2015 to 2,736 in 2016 (11.7%), with registrations increasing from 2,013 to 2,288 (13.6%) in the same period.
Likewise, the data indicates a healthy patenting picture, with Scottish applications rising from 753 in 2016 to 855 in 2017 (13.5%), and 281 published in 2016 compared to 2017’s 303 (7.8%). A total of 157 Scottish patents were granted in 2017 – marking a 21.7% rise on the previous year’s total of 129.
Campbell Newell, a partner in Marks & Clerk’s Edinburgh office, notes that the spike in applications – including a recent upsurge of craft brewers and distillers – indicates that the Scottish food and drink sector is continuing to thrive despite Brexit concerns.
Campbell said: “Scotland has always punched above its weight when it has come to producing ambitious entrepreneurs making their mark both nationally and internationally and our food and drink and tourism sectors are the envy of the world. These sectors have been carefully grown through hard work and innovation, however, and protecting this is crucial.
“It’s therefore great to see that Scottish businesses are continuing to recognise the importance of protecting and investing in their intellectual property – something we are seeing repeated across our Edinburgh, Glasgow and Aberdeen offices.
“The results of this savvy approach to protecting innovation and value is clear to see. The Scottish brewery sector for example has grown massively since 2010 thanks to an explosion in the popularity of craft beers with 115 breweries operating in 2018, compared to just 35 eight years ago.
“Likewise there are now 128 malt and grain distilleries in Scotland, giving the country the largest concentration of whisky producers in the world, and buy local initiatives are reaping dividends.
“It all serves to reaffirm Scotland’s status as a leading marketplace for ambitious young businesses looking to make their mark.”
The data also shows Scotland has outperformed Wales and Northern Ireland in both trade mark and patenting areas.
Wales filed 1,431 trade mark applications in 2016, rising to 1,700 in 2017 (18.7%), and made 1,201 registrations, rising to 1,332 (10.9%) across the same period.
Meanwhile, Northern Ireland’s trade mark applications increased from 565 to 687 (21.5%). Its registrations rose from 447 to 549 (22.8%).
For patents, Wales recorded a drop in applications from 469 to 382 (-18.5%), while the figure remained static at 193 for applications published.
Northern Ireland recorded a modest rise in patent applications, increasing from 156 to 158 (1.2%), while the number of applications published dropped from 86 to 83 (-3.4%).
[1] Official Statistics. Facts and figures: patent, trade mark, design and hearing administrative data 2016 and 2017 calendar years (From Intellectual Property Office)
ScotRail is adding extra carriages to help the tartan army travel to Hampden Park and cheer on Scotland in their crunch UEFA Nations League fixture.
The national team face Israel in their final group stage match on Tuesday 20 November at 7.45pm.
ScotRail will be adding carriages to trains to and from Mount Florida – the closest station to Hampden Park – as well as on trains to Perth, Dundee, Alloa and Cumbernauld after the final whistle.
Queuing systems will be in place at Glasgow Central before the match, and at Mount Florida station afterwards. Fans are also being advised to head back to Mount Florida as quickly as possible after the game finishes and join the queues on Bolton Drive as trains are expected to be busy.
To help ensure customers arrive at the game on time, they should allow extra time for travel – as well as purchasing tickets in advance.
As with most special events, ScotRail will have extra staff on the ground to assist customers.
ScotRail Head of Customer Operations Phil Campbell said:
“This is a crucial game for Scotland, and we’re looking forward to helping supporters travel to the game to cheer on our national team.
“To help the event run smoothly, we’re adding extra carriages to trains to and from Hampden.
“Regular commuters who travel home from Glasgow on the line via Mount Florida should be aware that services will be much busier than normal with fans heading to the match.”
