STEERING LEADING FIRMS THROUGH CHOPPY WATERS Alistair Phillips-Davies of SSE Takes the Top Spot
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Turnaround Leadership The Big Profile Tales Secrets David Horne putting From burger bar Future proofing Virgin East Coast to science lab your business on track www.insider.co.uk in association with TOP500 STEERING LEADING FIRMS THROUGH CHOPPY WATERS Alistair Phillips-Davies of SSE takes the top spot Vol 34 No.1 Jan/Feb 2017 £4.00 PLUS COULD GOVERNMENT DO MORE TO KEEP GLOBAL COMPANIES IN SCOTTISH HANDS? Save Money and Save Time ' " $"! $ '" " " $ ' " "! #! '"! "# !" !!!""%" !" Contact account manager, Elaine Chester to find out more, [email protected] Agenda TIME TO EMERGE FROM THE SHADOWS OF A TOUGH 2016 Ken Symon’s regular view on business ELCOME to the first issue of Insider include FreeAgent, which has just launched onto for 2017, which features our annual the AIM market and joins our Quoted Companies listing of Scotland’s best performing listing tables this issue (page 12). Hopefully there large companies. will be more Scottish companies going to market in WThis year’s Top 500 features some impressive 2017 and, indeed, we hear that there are some being companies emerging into the top ranks of Scottish- lined up. based businesses but there are many whose fortunes But how many of them will make it through have suffered through the effects of the continuing to listing rather than accepting the level of offers low oil price and from the teasing out of the from overseas bidders that the level of the pound remaining effects of the 2008 financial crisis. encourages remains to be seen. It will make thought-provoking reading as The effects of the Brexit vote and much else beside international economic and political events continue that was contained in our State of Scotland survey to cast a long shadow over many Scottish businesses. were teased out by the participants in our Round But there is much to admire and much of that Table discussion - conducted in November - that we underlines the importance of leadership at the top report on in this issue (page 54). to steer businesses through uncertain waters – issues That survey showed criticism of the UK Government’s and (more so) the Scottish Government’s handling of the Brexit situation. As It was the emergence and development of this issue was going to press some of the cloud of doubt of Theresa May’s Government’s approach well-led businesses that stimulated the seemed to be clearing with the suggestions that there might be an interim agreement between the UK and notable deals for Skyscanner and FanDuel the EU that would prevent the “cliff edge” that might result from a sudden stark departure. that we highlight in our Secrets of Leadership feature I suspect that many businesspeople’s fears will be (page 67). allayed by that approach, although it is still very early It was the emergence and development of well-led days. and developed tech businesses that stimulated the We should remind ourselves that we do not know notable deals for Skyscanner and FanDuel, both how things will pan out – as the events since Brexit Edinburgh-based which have been the highlight of have shown – including, for example, the fact that much coverage in recent weeks and indeed features the 10 per cent fall in UK house prices predicted by in our Burning Question in this issue (page 18). the Treasury has failed to materialise. Given the rise of these businesses in the capital But we should also never forget but rather it perhaps should not be too much of surprise that celebrate the combined talent and ingenuity of Edinburgh was voted the Entrepreneurial City of our entrepreneurs and our business leaders, which the Year in the Great British Entrepreneur Awards were very much on display at the Entrepreneurial in London in November, beating Cambridge, Leeds, Scotland dinner I attended at the end of November. Manchester and London (although it was reputedly It is evident too in a new annual feature a surprise to the Edinburgh delegation). Turnaround Tales that I have introduced in this issue Russell Dalgleish, founder of Exolta Capital (page 60). There are three very different stories of Partners, who accepted the award, said: “As Scots it business, personal and career turnarounds to inspire doesn’t sit well for us to be congratulated on success, us and make us think. but we are changing the tech landscape and we are As we go further into 2017 let us keep those tales going to have to get used to accepting praise.” in our minds and never just accept ‘business as Further leading Edinburgh tech businesses usual’. ■ contact: [email protected] www.insider.co.uk January 2017 INSIDER 3 ISSUE: JANUARY/FEBRUARY 2017 contents COMMENT 3 Agenda: Ken Symon discusses the need for leadership and fresh thinking 53 In My View: Jim Burberry of RSM looks at whether Scotland should take control of VAT 20 59 Ian Ritchie: Scotland needs more computer science teachers 25 REPORTS 20 Big Profile: David Horne, managing director of Virgin East Coast 25 Top500 2017: Our annual examination of the financial performance of Scotland’s biggest businesses. 31 Insider’s exclusive listings 48 Index 50 Notes 54 Round Table: Our panel examine the results of our State of Scotland survey 60 Turnaround Tales: A New Year Insider feature that looks at powerful stories of businesses or individuals that have reinvented themselves 67 Secrets of Leadership: Kristy Dorsey discusses what 84 is needed to lead rather than just manage your business 74 Round Table: The future of tourism in Scotland 79 79 Life Sciences: The changing face of the sector in Scotland 84 Regional report: East Ayrshire - a new tourist attraction is the catalyst for new growth 89 Lifestyle: New Year Health - where should you go to tone yourself up for your New Year New You drive? 67 4 INSIDER January 2017 www.insider.co.uk 116 REGULARS 9 Briefing: News and reviews 12 Scotland’s Quoted Companies: How Scotland’s listed companies are faring 14 Vital Statistics: Our regular look at the figures that matter in Scottish business and the wider economy 16 Insider Creative: Why Andrew Dobbie took Made Brave east 18 Burning Question: Can the government do more to keep thriving global companies in Scottish hands? 92 International: Growth makes trade with ASEAN countries more attractive 94 IT Matters: The latest on the battle against cyber crime 98 Commercial Property: Insider’s regular round up of activity in the Scottish property market 110 Wealth: ‘Trumponomics’ looming over internatinoal 98 115 financial markets 113 Appointments: Who’s on the move? 115 Personnel: Fatal Accident Enquires powers extended 116 Slainte: Events, people, parties 118 Ten Minute Interview: Jamie Grant, head of business and corporate banking for Barclays in Scotland EVENTS 92 103 Scottish SME Awards: After dinner speaker revealed 60 for the event 104 Aberdeen Deals Business Breakfast: Latest readings on the deals climate 105 Made in Scotland Awards: Celebrating the best of Scottish innovation 106 Scottish Accountancy & Finance Awards: Entries are now being invited for our awards 107 Top 500 Business Breakfast: Revealing the top business panellists for this event 108 Swim Run: Announcing Insider’s first participatory 8989 sports event 94 www.insider.co.uk January 2017 INSIDER 5 COMMENT GOOD BUSINESS: Successful succession SCOTTISH BUSINESS INSIDER One Central Quay, Glasgow G3 8DA Switchboard: 07795 364732 Fraser Campbell, Fax: 0141 309 3545 Head of Family Businesses with ISSN: 0952-1488 Chartered Accountants Campbell Dallas Publisher Field sales executive Allan Rennie Michelle Junnor Tel: 0141 309 3413 Tel: 07342 064864 E: [email protected] Director – events & business Michele Aaen Events Tel: 07769 935583 Events Operations Manager E-mail: [email protected] Fraser Lisa Lynas Campbell Editorial Tel: 0141 309 3095 Editor [email protected] Ken Symon WHEN Donald Trump business families, and the Events delivery executive Tel: 0141 309 3339/07769 164698 Carrie McGill becomes President in point at which most family E-mail: [email protected]/ Tel: 0141 309 3423 January, his family business businesses either fail, or [email protected] E: [email protected] will grapple with issues that break up. Sub-editor Social Media Executive will be familiar to family The Trump family Mark Lane Rachel Sweeney Tel: 07841 285529 Tel: 07826 893 792 businesses across Scotland. business is about to enter a E: [email protected] E: [email protected] The incoming President period of “forced retirement” Insider business bulletin is in his 70s, and is a similar as the founder moves into Scott McCulloch Key account manager – events Aileen Turnbull age to the leaders of many another leadership role. Will Tel: 07789 397551 E: scott.mcculloch01@ Tel: 0141 309 4909 family businesses established the senior family member trinitymirror.com E: [email protected] by the ‘baby boomer’ be able to keep focus on Researcher Senior Business Development Manager generation of the 1950s and the new day job without Steven Wilson Lynn Kelly 60s. Many of these founders Tel: 0141 309 3338 Tel: 07342051118 dipping back into the family E: [email protected] still lead their families and business? Will the children E: [email protected] businesses, with successive take the business in a Design & production Events delivery executive generations also involved. direction approved by the Ewan Lauder Kirsty Loughlin Tel: 0141 309 3673 Tel: 0141 309 3885 As society changed in founder? What will happen E: [email protected] the latter half of the 20th after the years of forced Advertising Group Head - Advertising Senior Business Development Manager century it became common retirement? Eleanor Hunt Paul Connolly for family businesses to have Even if Scotland’s business Tel: 07788 168 576 Tel: 0141 309 3054 “splinter” branches arising families do not have the E: [email protected] E: [email protected] from failed marriages.