Scotland Ltd 2016 2 Scotland Ltd 2016 Contents

Introduction from Andrew Howie 04 About Scotland Ltd 2016 06 Scotland’s top 100 limited companies 08 Top 100 overview 10 Location of Scotland's top 100 companies 12 Food & Drink (including Leisure) 14 Analysis: The Scottish Food & Drink Federation 16 Property & Construction 18 Energy 20 Analysis: Bill Jamieson 22 Analysis: Start-up Grind 23 About Grant Thornton UK 24

Scotland Ltd 2016 3 Introduction: Andrew Howie

It’s difficult to look back at 2016 and not be overwhelmed by the rate of disruption and scale of political and economic shocks that rocked the world. For some time now, Grant Thornton has spoken about the need for businesses and political leaders to accept the era of disruption. Looking back, it’s clear that we’ve already arrived.

From the election of Donald Trump to Brexit, the Commonwealth Games. The world was economic analysts, pollsters and political experts watching us with interest and intrigue. Now, two have been left scratching their heads as the act of years later, the big news stories and events have second-guessing and understanding what comes moved elsewhere, but the need to understand next becomes increasingly challenging. the opportunities and challenges our business Scotland certainly hasn’t been immune community faces is greater than ever before. from the uncertainty witnessed globally. We’re Our Scotland Ltd 2016 findings give reasons increasingly an exporting nation – sending not for us to be cautiously optimistic about the just our products overseas, but also our highly future. Once again, the country’s Food and skilled talent. The downside of our growing Drink sector dominates our rankings, taking worldwide role is the impact that we can feel a 24% share of the list. Scotland’s number one when events beyond our control take place business, for the second year in a row, is William elsewhere on the planet. Grant and Sons Holdings Limited, while fellow In 2014, when we first launched Scotland drinks producer, The Edrington Group Limited, Ltd, we wanted to address the rising complexity takes the third spot. of Scotland’s political and business world Property and Construction, a sector group we and take a snapshot of the top 100 limited reported as being in ‘fragile growth’ in our first companies, to give us all a sense of where we report, continues to regain lost ground with 20 are, what we should be celebrating and any companies in our top 100, including our number challenges that lie ahead. It was the year of 8 firm, Cala Group Limited, which has witnessed the Scottish independence referendum and the largest percentage rise in turnover of any of our

4 Scotland Ltd 2016 ranked businesses. The Property and Construction sector is a great example of the resilience and determination that has pulled Scotland’s economy through our own domestic challenges. But, it’s also a sector that faces some serious questions as Brexit looms. Will investment in major projects dry up? Will political upset damage globalisation, which has largely benefited construction? For many, 2016 will be the year that taught business and political leaders to never take prosperity and growth for granted. We live in an increasingly complex world, with new challenges and threats that will test the most experienced and successful of businesses. Scotland Ltd 2016 shows that we’re in a strong position to meet those challenges and build a more vibrant economy, but we must be prepared and focused on continuing the drive for long term, sustainable growth.

Andrew Howie Managing Partner, Scotland & Northern Ireland Grant Thornton UK

Scotland Ltd 2016 5 About Scotland Ltd 2016

Scotland Ltd 2016 is compiled using the most recent publicly available accounts (as of 1 September 2016) of Scotland’s best performing private businesses based on a hybrid measure of data, which includes turnover and profits.

The report excludes companies that are listed, us with insight into economic trends and to give owned by listed businesses, or the subsidiaries of us a more detailed understanding of how various companies from the rest of the UK or overseas. We industries are performing. have then analysed the aggregate financial data of Inevitably, there is a time delay between the these companies to gain an insight into the shape availability of the data used and the presentation of and performance of this important part of the this report. However, we’ve worked hard to create Scottish economy, and one which is fundamental parameters and measurement tools that produce as to generating prosperity and employment in the accurate a snapshot of Scotland’s entrepreneurial, country. dynamic businesses as possible. In our findings, we’ve categorised companies by sector and location. Again, this is to provide

6 Scotland Ltd 2016 Breakdown of fundamentals by sector

Sector Count Turnover (£m) % of turnover Employees % of employees Food and Drink (inc. Leisure) 24 3,737,787 18.0% 19,239 17.4% Property and Construction 20 3,307,242 15.9% 14,571 13.2% Retail and Wholesale 15 2,895,266 13.9% 19,440 17.6% Automotive and Motor Retail 10 6,401,343 30.8% 17,940 16.2% Manufacturing 10 1,049,343 5.0% 6,458 5.8% Energy 9 1,447,715 7.0% 6,990 6.3% Business Support 6 817,107 3.9% 9,688 8.8% Financial Services 3 383,953 1.8% 781 0.7% Facilities Management 2 525,641 2.5% 13,377 12.1% Media 1 244,842 1.2% 2,148 1.9%

Scotland Ltd 2016 7 Scotland's top 100 limited companies

1 William Grant and Sons Holdings Limited 29 Forth Holdings Limited 2 Arnold Clark Automobiles Limited 30 James Walker (Leith) Limited 3 The Edrington Group Limited 31 ABA Eaglesham Limited 4 The Miller Homes Group (UK) Limited 32 Bartlett International Holdings Limited 5 The Edinburgh Woollen Mill (Group) Limited 33 Hunter Boot Limited 6 Farmfoods Limited 34 C C G (Holdings) Limited 7 Alexander Dennis Limited 35 R.J. Mcleod (Contractors) Limited 8 Cala Group Limited 36 Peoples Limited 9 Park's of Hamilton (Holdings) Limited 37 Stewart Milne Group Limited 10 GEG (Holdings) Limited 38 Dingbro Limited 11 D.C. Thomson and Company Limited 39 Browns Food Group Limited 12 Walter Scott and Partners Limited 40 Lunar Fishing Company Limited 13 John Clark (Holdings) Limited 41 J.W. Galloway Limited 14 Turner and Co. (Glasgow) Limited 42 Advance Construction Group Limited 15 Robertson Group (Holdings) Limited 43 Burntisland Fabrications Limited 16 Eastern Holdings Limited 44 Cruden Holdings Limited 17 Craig Group Limited 45 Kent Foods Limited (HMS (485) Limited) 18 Peter Vardy Holdings Limited 46 Ogilvie Group Limited 19 James Jones and Sons Limited 47 Orion Engineering Services Limited 20 J.R. Dalziel Limited 48 Gray and Adams Holdings Limited 21 City Refrigeration Holdings (UK) Limited 49 Braid Group (Holdings) Limited 22 Balmoral Group Holdings Limited 50 Castle View Ventures Limited 23 BSW Timber Limited 51 Mactaggart and Mickel Group Limited 24 GAP Holdings Limited 52 G1 Group (Holdings) PLC 25 John Maclean And Sons Electrical (Dingwall) Limited 53 Arthur Mckay and Co Limited 26 Murray Capital Group Limited 54 Ian Macleod Distillers Limited 27 The Malcolm Group Limited 55 James Donaldson and Sons Limited 28 Walkers Shortbread Limited 56 Ethigen Limited

8 Scotland Ltd 2016 57 QTS Group Limited 79 Bell Group UK Limited 58 Leiths (Scotland) Limited 80 Muir Group Public Limited Company 59 Scot JCB (Holdings) Limited 81 3 ED Holdings Limited 60 Scott Group Investments Limited 82 KHL Holding Limited 61 The Mccurrach Group Limited 83 United Wholesale (Scotland) Limited 62 Macdonald Hotels Limited 84 Community Wind Power (Holdings) Limited 63 Glenrath Farms Limited 85 Glenalmond Group Limited 64 Briggs Commercial Limited 86 Mactaggart Scott (Holdings) Limited 65 Thomas Tunnock Limited 87 The Anderson Group Ltd (prev. S.A.H. Limited) 66 Barrhead Travel Limited 88 W.N. Lindsay Limited 67 J and D Pierce (Contracts) Limited 89 Cameron Group (Perth) Limited 68 Richard Austin Alloys Limited 90 Saltire Energy Limited 69 Allied Holdings (UK) 2014 Limited 91 John G. Russell (Transport) Limited 70 Scottish Leather Group Limited 92 Dales Engineering Limited 71 Spark Energy Limited 93 Campbell's Prime Meat Holding Company Limited 72 The Benriach Distillery Company Limited 94 Alexander Inglis & Son Limited 73 Patersons Quarries Limited 95 John R Adam and Sons (Holdings) Limited 74 Edinburgh Partners Limited 96 Macphie of Glenbervie Limited 75 E.G. Thomson (Holdings) Limited 97 McAlpine and Company Limited 76 Apex Hotels Limited 98 Caledonian Heritable Limited 77 John Lawrie (Aberdeen) Limited 99 Granfit Holdings Limited 78 The Harbro Group Limited 100 Kettle Produce Limited

Scotland Ltd 2016 9 Top 100 overview

RANK BY TURNOER GROTH (HIGHEST TO LOEST) 2016’s top 100 limited companies reflect the challenging, yet resilient climate in Scotland today. Turnover growth (this year) Turnover (2015) Turnover (2016) 1 CALA GROUP LIMITED 85% 235,468 436,622 2 BALMORAL GROUP HOLDINGS LIMITED 73% 79,061 136,534 Combined turnover remains impressively high at is down from £4.1 billion in 2015 to just over £3.7 3 DALES ENGINEERING LIMITED 66% 23,915 39,779 £20.8 billion, but is around £1.7 billion lower than billion. 4 ADANCE CONSTRUCTION GROUP LIMITED 55% 86,097 133,454 our 2015 report. Scotland's Energy sector faced some of its biggest 5 3 ED HOLDINGS LIMITED 53% 27,485 42,077 Scotland’s Food & Drink sector has been challenges in 2016, but our research suggests there 6 BURNTISLAND FABRICATIONS LIMITED 47% 141,082 208,094 held up as an example of how an industry based are signs of resilience, with nine businesses now 7 SPARK ENERGY LIMITED 43% 83,007 118,590 8 C C G (HOLDINGS) LIMITED 42% 87,917 124,474 on a wide mix of businesses and specialisms represented in our rankings, up from seven last year. 9 JAMES ALKER (LEITH) LIMITED 30% 111,841 144,943 can work together and achieve record breaking One industry group that deserves credit for its 10 JOHN CLARK (HOLDINGS) LIMITED 28% 470,186 604,114 growth. However, global economic and political efforts to return to sustainable growth is Scotland’s 11 BRIGGS COMMERCIAL LIMITED 23% 50,279 61,768 uncertainty has taken its toll on even the most Property & Construction sector. There are now 20 12 J AND D PIERCE (CONTRACTS) LIMITED 22% 37,448 45,802 successful of industry groups. 24 Food and Drink businesses represented in our top 100 – an increase 13 GAP HOLDINGS LIMITED 21% 118,400 143,309 businesses, including our number one and number of three from last year, while 14,571 are now 14 STEART MILNE GROUP LIMITED 20% 209,731 252,691 three companies, make it to this year’s top 100 – employed by those firms, up from 12,639 in 2015. 15 GRANFIT HOLDINGS LIMITED 20% 29,970 36,014 up from 21 in 2015. However, combined turnover

TOP 100 BY SECTOR Energy Food and Drink Retail and 9 20 24 (including Leisure) 15 wholesale Manufacturing 6 Property and Business construction Facilities management 10 Automotive and support Media motor retail 3 1 10 Financial 2 services

TOP 5 COMPANIES TOP 5 COMPANIES TOP 5 COMPANIES BY TURNOER BY EBITDA BY EMPLOYMENT

1 Arnold Clark 1 William Grant and Sons 1 City Refrigeration Automobiles Limited Holdings Limited Holdings (UK) Limited

2 William Grant and Sons 2 The Edrington 2 The Edinburgh Woollen Holdings Limited Group Limited Mill Group Limited

3 Farmfoods 3 Arnold Clark 3 Arnold Clark Limited Automobiles Limited Automobiles Limited

4 The Miller Homes 4 The Edinburgh Woollen 4 Castle View Group (UK) Limited Mill (Group) Limited Ventures Limited

5 John Clark 5 Walter Scott and 5 Farmfoods (Holdings) Limited Partners Limited Limited

10 Scotland Ltd 2016 RANK BY TURNOER GROTH (HIGHEST TO LOEST)

Turnover growth (this year) Turnover (2015) Turnover (2016)

1 CALA GROUP LIMITED 85% 235,468 436,622 2 BALMORAL GROUP HOLDINGS LIMITED 73% 79,061 136,534 3 DALES ENGINEERING LIMITED 66% 23,915 39,779 4 ADANCE CONSTRUCTION GROUP LIMITED 55% 86,097 133,454 5 3 ED HOLDINGS LIMITED 53% 27,485 42,077 6 BURNTISLAND FABRICATIONS LIMITED 47% 141,082 208,094 7 SPARK ENERGY LIMITED 43% 83,007 118,590 8 C C G (HOLDINGS) LIMITED 42% 87,917 124,474 9 JAMES ALKER (LEITH) LIMITED 30% 111,841 144,943 10 JOHN CLARK (HOLDINGS) LIMITED 28% 470,186 604,114 11 BRIGGS COMMERCIAL LIMITED 23% 50,279 61,768 12 J AND D PIERCE (CONTRACTS) LIMITED 22% 37,448 45,802 13 GAP HOLDINGS LIMITED 21% 118,400 143,309 14 STEART MILNE GROUP LIMITED 20% 209,731 252,691 15 GRANFIT HOLDINGS LIMITED 20% 29,970 36,014

TOP 5 COMPANIES TOP 5 COMPANIES TOP 5 COMPANIES BY TURNOER BY EBITDA BY EMPLOYMENT

1 Arnold Clark 1 William Grant and Sons 1 City Refrigeration Automobiles Limited Holdings Limited Holdings (UK) Limited

2 William Grant and Sons 2 The Edrington 2 The Edinburgh Woollen Holdings Limited Group Limited Mill Group Limited

3 Farmfoods 3 Arnold Clark 3 Arnold Clark Limited Automobiles Limited Automobiles Limited

4 The Miller Homes 4 The Edinburgh Woollen 4 Castle View Group (UK) Limited Mill (Group) Limited Ventures Limited

5 John Clark 5 Walter Scott and 5 Farmfoods (Holdings) Limited Partners Limited Limited

Scotland Ltd 2016 11 Location of Scotland's top 100 companies

12 Scotland Ltd 2016 1 Fraserburgh 1 Elgin

1 Keith 1 Turriff

1 Aberlour 2 Inverness Peterhead 2

9 Aberdeen Westhill 1

1 Stonehaven

1 Dundee

1 Perth 1 Cupar

Stirling 4 Dumfermline 1 Glenrothes 2 1 Burntisland Larbert 1 1 1 Falkirk Inverkeithing Edinburgh Glasgow Airdrie Linlithgow Renfrew 1 15 2 1 2 Tranent Coatbridge 25 2 1 2 Bridge of Weir 1 Bellshill 2 Bathgate Broxburn 1 1 Livingston 2 Loanhead Paisley 1 Hamilton 1 1 Motherwell 1 West Linton Beith 1 Strathaven

1 Earlston

1 Sanquhar

1 Langholm

Scotland Ltd 2016 13 Food & Drink (including Leisure)

Scotland’s Food & Drink sector has witnessed record breaking levels of growth in recent years, backed up by a concerted, co-ordinated strategy led by the Scottish Government, Scotland Food & Drink, The Scottish Food & Drink Federation, and business leaders.

The result is an industry group which continues growing political and economic uncertainty to dominate our top 100. This year, 24 businesses throughout the world appears to have had some feature in our list, including William Grant and impact. Reducing commodity prices have also Sons Holdings Limited, which takes the top spot had an impact as the price of food has fallen. for the second year in a row. At just over £3.7 billion, combined turnover is In 2014, we reported an industry whose down from £4.1 billion last year. Meanwhile, growth was partly the result of a strong push to there are 19,239 people working for Food & increase Scotland’s global reputation for food Drink firms in our top 100, up from 18,680 in and drink, and increase our export market share. the 2015 report. While that effort has undoubtedly been a success,

TOTAL TURNOER £3.7bn £4.1bn in 2015

TOTAL NUMBER TOTAL EMPLOYEES OF COMPANIES 19,239 24 18,680 in 2015 21 in 2015

14 Scotland Ltd 2016 FOOD & DRINK (INC. LEISURE) COMPANIES IN TOP 100:

William Grant and Sons Holdings Limited 1st The Edrington Group Limited 3rd J.R. Dalziel Limited 20th Walkers Shortbread Limited 28th ABA Eaglesham Ltd 31st James Chadwick, Bartlett International Holdings Limited 32nd Head of Food and Drink in Scotland for Browns Food Group Limited 39th Grant Thornton Lunar Fishing Company Limited 40th J.W. Galloway Limited 41st “The Food & Drink sector in Scotland Kent Foods Limited (HMS (485) Limited) 45th remains on course to exceed its £16.5 G1 Group (Holdings) PLC 52nd billion valuation target by the end Ian Macleod Distillers Limited 54th of 2017. The industry deserves the credit it is receiving worldwide. Hard Macdonald Hotels Limited 62nd work and serious collaboration has Glenrath Farms Limited 63rd resulted in a complete turnaround in Thomas Tunnock Limited 65th perceptions and revenues. However, Barrhead Travel Limited 66th there is no doubt that Brexit and other The Benriach Distillery Company Limited 72nd political uncertainties will have an Apex Hotels Limited 76th impact. To an extent, we’re holding W.N. Lindsay Limited 88th our breath, waiting to see what Campbell's Prime Meat Holding Company Limited 93rd might happen to exports and trading Alexander Inglis And Son Limited 94th conditions. But, the hard work has Caledonian Heritable Limited 98th already been done and the industry is Kettle Produce Limited 100th in a strong, healthy position, ready to take on the challenges that lie ahead.”

TOTAL TURNOER £3.7bn £4.1bn in 2015

TOTAL NUMBER TOTAL EMPLOYEES OF COMPANIES 19,239 24 18,680 in 2015 21 in 2015

Scotland Ltd 2016 15 Food & Drink (including Leisure)

Analysis: David Thomson, Scottish Food & Drink Federation

Scotland’s food and drink industry remains strong and vibrant - as this report demonstrates. David Thomson With 24 out of the top 100 businesses working in the Food and Drink sector, our companies CEO, Scottish Food & are of critical importance to Scotland’s economic future. Drink Federation There are significant challenges on the horizon. It is essential that the Food and Drink sector is given assurance as we begin to negotiate our exit from the European Union. With currency fluctuation, import prices have risen, and the price of food is likely to go up early in 2017. Food and Drink companies rely on EU workers, valued employees who bring important skills and expertise. Their future – and Britain’s future immigration policy – must be clarified as soon as possible. Holyrood and Westminster should ensure that they prioritise such a critical industry in EU negotiations where there is a minefield of complex legislation.

2016 was a year where much changed. 2017 is the year where we will begin to see the impact of that change on the high street and in people’s pockets. Our strong and vibrant food and drink industry is well placed to adapt to these changes and, with the right environment, to continue to thrive.

16 Scotland Ltd 2016 "There are significant challenges on the horizon. It is essential that the Food and Drink sector is given assurance as we begin to negotiate our exit from the European Union."

David Thomson CEO, Scottish Food & Drink Federation

Scotland Ltd 2016 17 Property and Construction

In 2009, a global financial crisis marked the peak of a two-year period dubbed the ‘Great Recession’. The worldwide economy experienced challenges not witnessed since the Great Depression of the 1930s and in Scotland, two sectors bore the brunt of the crash – Financial Services and Property & Construction.

Property & Construction businesses have slowly rebuilt – almost 2,000 more than last year. and refocused, but the challenge has been significant, with The rate at which the industry has recovered is highlighted limited access to finance and an increasing skills shortage by three businesses in our list. With a combined turnover of leaving some firms unable to meet new demand following more than £394 million, Balmoral Group Holdings Limited, such a prolonged period of decline. CCG (Holdings) Limited and Advance Construction Group In 2016, we can report a sector which has relentlessly Limited are our top 100’s ‘biggest movers’ in the Property repositioned itself at the heart of the Scottish economy. and Construction sector witnessing rapid revenue growth. Cautious but consistent recovery has helped to spark a new Balmoral Group Holdings Limited alone witnessed a building boom in the country’s towns and cities, backed by turnover growth of more than 72%. increased investment in major public infrastructure projects, Despite the promising signs, the next year brings new including the M8/M74 extensions, Aberdeen’s Western risks. Many of the major projects helping to reinvigorate Periphery Route, the long-awaited dualling of the A9, and the sector depend on European funding and EU workers. A the new Queensferry Crossing. potential ‘hard Brexit’ could have major consequences for an This year’s Scotland Ltd report reflects this new found industry only starting to get back on its feet. 2017 could be self-confidence. 20 Property and Construction companies the year, Scotland’s Property & Construction sector is tested make our top 100, up from 17 in 2015. Meanwhile, the more than ever before. number of people directly employed by the Property & Construction firms within our top 100, now stands at 14,571

TOTAL EMPLOYEES

TOTAL NUMBER 14,571 OF COMPANIES 12,639 in 2015 20 17 in 2015

18 Scotland Ltd 2016 PROPERTY & CONSTRUCTION COMPANIES IN THE TOP 100 Lorraine Macphail, Head of Property and Construction in The Miller Homes Group (UK) Limited 4th Ogilvie Group Limited 46th Scotland for Grant Thornton Cala Group Limited 8th Mactaggart and Mickel Group Limited 51st “The industry has worked tirelessly to Robertson Group (Holdings) Limited 15th Arthur Mckay and Co. Limited 53rd rebuild itself after a period which almost Balmoral Group Holdings Limited 22nd Leiths (Scotland) Limited 58th devastated it. Thousands of jobs were lost and many projects mothballed, but we’re Forth Holdings Limited 29th Patersons Quarries Limited 73rd now finally starting to see the shoots of James Walker (Leith) Limited 30th E.G. Thomson (Holdings) Limited 75th sustained recovery. You just have to look at cities like Glasgow, Edinburgh, Dundee C C G (Holdings) Limited 34th Muir Group Public Limited Company 80th and, even Aberdeen, and it’s hard to miss

R.J. Mcleod (Contractors) Limited 35th 3 ED Holdings Limited 81st the sight of cranes and workmen.

Stewart Milne Group Limited 37th KHL Holding Limited 82nd Sadly, the fresh risk of withdrawal from

Advance Construction Group Limited 42nd the single market means many of the challenges of 2009 could return. The next Cruden Holdings Limited 44th few months will be crucial if Scotland’s Property & Construction sector is to continue to grow and rebuild lost ground.”

TOTAL EMPLOYEES

TOTAL NUMBER 14,571 OF COMPANIES 12,639 in 2015 20 17 in 2015

Scotland Ltd 2016 19 Energy

If any industry could perfectly reflect the uncertain, challenging times in which we now live, it would be Energy. The continuing fluctuation of oil prices dominated the business news agenda with Aberdeen bearing much of the brunt.

After so many years of relentless growth, the Granite city number of firms making this year’s list is up two, from has faced a few cracks recently. Estimates suggest there seven to nine. Turnover is also up, from almost £1.2billion are currently between around 350,000 and 375,000 people in 2015, to £1.4 billion in 2016. Meanwhile, the number of working as North Sea Oil and Gas employees. In 2014, the people working for our Energy firms in the top 100 is also up figure was thought to be nearer 440,000. The statistics show slightly, from 6,649 to 6,990. While these figures may appear how vital the success of the Energy sector is, not just to the on the low side compared to the overall size of the sector north east, but all of Scotland. in Scotland, many of the large well known businesses in Our Scotland Ltd 2016 data reflects the challenging Aberdeen have parent companies elsewhere in the UK and so conditions experienced by the industry over the last 12 fall outside of the Scotland Ltd list. months. However, there is some scope for optimism. The

TOTAL TOTAL NUMBER TURNOER OF COMPANIES £1.4bn £1.2bn in 2015 9 TOTAL EMPLOYEES 7 in 2015 6,990 6,649 in 2015

20 Scotland Ltd 2016 Ian Knott, Aberdeen-based Advisory Director at Grant Thornton

ENERGY COMPANIES IN THE TOP 100 “For those who can remember the impact of the 1980s oil glut on the Aberdeen economy there were some unsettling signs over the last two years GEG (Holdings) Limited 9th that this latest downturn could be just as prolonged and damaging. But, Craig Group Limited 17th despite the many issues facing the industry and the region right now, there Burntisland Fabrications Limited 43rd are reasons to be optimistic. The industry has been here before and pulled through, reflecting the resilience of a sector that is built on innovation and Orion Engineering Services Limited 47th overcoming significant challenges. The latest crisis has forced political and Briggs Commercial Limited 64th business leaders to focus on some of the chronic issues that have developed Spark Energy Limited 71st in recent years. The North Sea is a mature and complex environment that Community Wind Power (Holdings) Limited 84th has experienced structural constraints together with rapid and unsustainable Saltire Energy Limited 90th cost inflation at a level that would eventually impact the longer term viability Dales Engineering Limited 92nd of the basin. The oil price decline has forced the industry to reduce costs and increase efficiency, looking at everything from the potential to use innovative new technology to maximise financial returns to planning for better decommissioning. There has also been increased activity to identify opportunities internationally by leveraging the expertise developed in the North Sea. The shorter term prospects for Scotland’s energy sector remain challenging but, in the longer term, with greater collaboration and a focus on maintaining a sustainable cost base it can continue to play a major role in the success of our national economy."

TOTAL TOTAL NUMBER TURNOER OF COMPANIES £1.4bn £1.2bn in 2015 9 TOTAL EMPLOYEES 7 in 2015 6,990 6,649 in 2015

Scotland Ltd 2016 21 2016: Further progress despite a slowing economy

In a year of shocks and surprises, and a slowing economy Bill Jamieson north of the border, Scotland’s Top 100 companies have Business and Economics Commentator fared remarkably well, with notable uplifts in turnover and profitability. Bill Jamieson was Executive Editor of The Scotsman for 11 years, regularly The Top 100 continues to be dominated by companies in the Food and Drink writing about finance, economics, (inc. Leisure) sector. Together, they number 24. But on turnover analysis, it is the politics and current affairs. He was also Automotive and Motor Retail sector that leads, accounting for almost 31% of top the Economics Columnist for sister title 100 company sales, followed by Food and Drink (inc. Leisure) with 18%. Property Scotland on Sunday and prior to that and Construction businesses followed at almost 16%, pipping Retail and Wholesale was Economics Editor of The Sunday (13.9%) to the number three slot. Telegraph for seven years. He has been Given the performance of Scotland’s economy overall, with the continuing a regular contributor to the Spectator downturn in the oil sector and the Fraser of Allander Institute estimating 2016 Business magazine and City AM and GDP growth at just 1%, the Top 100 have fared well. Sentiment was helped towards frequently commentates on business and the end of the year by trade data and business surveys showing that the economy economics affairs for BBC Scotland. was not as badly hit by the immediate repercussions of the Brexit vote as had been widely feared. Looking ahead, while there is understandable apprehension over the inflationary effects of sterling’s fall and uncertainties over future trade relations with the EU, exporters should enjoy the devaluation benefit while the tourism and leisure sectors should gain through the effect of the lower pound in making the cost of holidaying in Scotland more competitive. Companies in the house building, construction INESTMENT and related services businesses should benefit from the continuing emphasis on CAPITAL infrastructure spending and transport investment. UP £70m since 2015

22 Scotland Ltd 2016 Scotland's Year of Start-Ups

2016 saw Scotland’s start-up scene continue its upward Phin Mpofo trajectory in the key metrics that matter for start-ups, namely Director of Scotland, investment capital which is projected to be circa £500 million, Start-Up Grind up from £430 million in 2015 and company exits, again which Phin Mpofu is an entrepreneurship is projected to be more than the 12 tracked by Young Company evangelist. With experience in both residential real estate and technology, Finance in 2015. Phin founded HOMESPLACE, a venture working on helping tenants become Most notable of the exists being the recent sale of Skyscanner to Ctrip for £1.4 billion. It property owners by developing a financing has been a good year for the Scottish start-up ecosystem by all accounts. product that has the security of a With Scotland’s capital winning the ‘British Entrepreneurial City of the Year’, this mortgage, but the flexibility of a tenancy. further cemented why Edinburgh and indeed Scotland as whole are a fantastic place to His passion for entrepreneurship, helping start your company. The four criteria in which the awards were measured against say it all: and connecting others is also represented quality of life that attracts smart, entrepreneurial people; access to capital and talent; start- through his role as Director for Scotland up ecosystems and entrepreneurial culture; and access to mentors and support networks. at Startup Grind, the largest independent Whilst the above is certainly all positive, we need to ensure we maintain the balance of entrepreneurial community with over encouraging founders to start companies with taking their start-ups to hyper growth stage 400,000 members, in 200 cities and with the objective of achieving some form of exit, be it an IPO or trade sale. That balance counts Google for Entrepreneurs as a of starting and exiting ensures we maintain a virtuous start-up ecosystem. global partner.

INESTMENT CAPITAL UP £70m since 2015

Scotland Ltd 2016 23 About Grant Thornton

Grant Thornton is one of the world’s leading organisations of assurance, tax and advisory firms. These firms help dynamic organisations unlock their potential for growth by providing meaningful, forward looking advice.

Proactive teams, led by approachable partners public sector to build a business environment in these firms, use insights, experience and that supports growth, including national and instinct to understand complex issues for local public services. privately owned, publicly listed and public More than 38,500 Grant Thornton people, sector clients and help them to find solutions. across over 120 countries, are focused on At Grant Thornton our underlying purpose making a difference to clients, colleagues is to build a vibrant economy, based on trust and the communities in which we live and and integrity in markets, dynamic businesses, work. In the UK we provided services to and communities where businesses and people over 40,000 privately held businesses, public thrive. We work with banks, regulators interest entities and individuals. It is led by and government to rebuild trust through more than 185 partners and employs more corporate renewal reviews, advice on corporate than 4,200 of the profession’s brightest minds. governance, and remediation in financial In Scotland, more than 200 of our people are services. We work with dynamic organisations based in our offices in the heart of Glasgow, to help them grow. And we work with the Edinburgh and Aberdeen.

24 Scotland Ltd 2016 Grant Thornton International Ltd • One of the world’s leading organisations of assurance, tax and advisory firms • Combined turnover of $4.8 billion • More than 47,000 people based in over 130 countries

Grant Thornton UK LLP • UK member firm of Grant Thornton International Ltd • Turnover of £534 million • More than 185 partners, with 4,200 people • Operates from 27 offices

Scotland Ltd 2016 25 Notes

26 Scotland Ltd 2016 Notes

‘Grant Thornton’ refers to the brand under which the Grant Thornton member ﬁrms provide assurance, tax and advisory services to their clients and/or refers to one or more member ﬁrms, as the context requires.

Grant Thornton UK LLP is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions.

This publication has been prepared only as a guide. No responsibility can be accepted by us for loss occasioned to any person acting or refraining from acting as a result of any material in this publication. grantthornton.co.uk V26120