STANDING in a remarkably clean looking industrial unit in west Glasgow on a chilly winter morning, one of Scotland's leading entrepreneurs regards the prospects for 2012 with the kind of confidence that seems to be in short supply in business circles.

John Pirrie, who sold the LCH Generators business he built with his brother James for £62 million to Speedy Hire in 2006, is surrounded by the signs that the siblings' attempts to build more success stories are gathering momentum.

In a space where 200 people once made ducting before the work was transferred to Asia, the Pirries have created the headquarters for the Nevis Capital investment they formed to invest some of the proceeds of the Speedy Hire deal. The sprawling site also houses two of the companies that Nevis has taken under its wing.

One football-sized space is used by Apex Generators, which offers temporary hire of generating kit. Another provides an operations base for Dieselec Thistle, which supplies permanent stand-by generating facilities for customers who can't afford a power cut. Clients include hospitals and supermarkets.

"We have had lots of orders from poultry farmers recently," notes Mr Pirrie, 53, as he walks past a row of gleaming white generators, pleased with progress at both firms.

Dieselec has increased revenues by about £4m annually since Nevis paid millions for a significant stake in the firm in September 2010. The acquisition of Thistle Generators out of administration in December 2010 brought a higher-margin repairs and maintenance capacity and a long list of customers.

The deal was typical of the bolt-ons private equity firms use in buy-and-build strategies. These involve investors identifying a business that can provide a good route into a chosen market and then using their capital to help the firm make the most of its growth prospects. This can mean acquiring other firms or assets that will bring additional customers and capabilities.

Apex Generators is on course to achieve £2m annual earnings before interest, tax, depreciation and amortisation in the 2012 calendar year.

It was developed out of the Airdrie-based Woodside Power business which Nevis acquired for £4m in 2009.

Nevis also owns Birmingham-based Micro Spring & Presswork, which has been doing well. In February last year it led a £1m funding round for Clyde Space in Glasgow, which makes power systems for satellites.

Nevis sold the business of Shetland Wind Power in November, 10 months after acquiring the company. In September the firm that supplied the standard turbine which Shetland Wind Power marketed, Proven Energy, went into receivership.

Mr Pirrie is happy the performance of the remaining firms has validated the decision to focus on industrial services firms in the business to business space. This is a market the Pirries got to know well at LCH Generators.

While Nevis was founded at the tail-end of the boom, partners believe the slowdown has created good opportunities to grow.

They see lots of scope for quality operations to win share as rivals retrench or fold.

Apex does 70% of its business in the construction sector, which faces tough challenges. However, the company has been winning new customers.

Mr Pirrie believes the success is because of Nevis's decision to invest heavily in ensuring Apex can respond quickly when any orders come in.

The company has been increasing the size of its fleet while some rivals have been cutting back to sav e money.

"We have generators washed and serviced as soon as they come back in so they are ready when someone wants them," notes Mr Pirrie.

He says the Pirries have used the experience they acquired at LCH to good effect. Like LCH, Apex has its own transport capability, meaning it does not need to rely on third parties.

Given Mr Pirrie's experience of opening five depots at LCH, Nevis is ready to back Apex's plans to open facilities south of the Border.

The fundamentals of the market served by Dieselec are very sound. Demand for stand-by facilities is growing strongly.

Having Deiselec and Apex on the same site helps Nevis realise synergies. For example, Apex refers customers who want permanent solutions to Dieselec and vice versa.

Nevis can also offer investee companies financial nous. Brian Aitken became a partner in the business after advising the Pirries on the sale to Speedy Hire when he was at PriceWatehouseCoopers the big-four accountant. Mr Aitken plays an important part in the process of identifying acquisitions and getting deals done.

He, too, is well pleased with the shape the portfolio is in.

After Nevis spent 2011 focusing mainly on investee companies, the chartered accountant believes it is time for Nevis to hit the acquisition trail.

"In 2012 we want to go out and have another deal year. We have got the capital to do it," he says.

While a shortage of bank funding is affecting many, Nevis can fund its own deals. Dieselec was an all-equity deal.

Aitken says Nevis would be happy to expand its presence in the markets it is in. He notes: "Apex is getting itchy feet."

It might also consider new markets. There is plenty of room for expansion at the Milngavie base. Nevis is investing £1m in reordering the old factory space to include new units which could be used by portfolio firms or local businesses.

Mr Aitken laughs that while the accountant in him questioned the need for such a big complex, the entrepreneur in Mr Pirrie was quick to see the potential of the site.

Both are having a great time at Nevis. However, they share concern about the prospect of Scottish independence vote in 2014.

Mr Pirrie observes: "It's not easy to establish yourself, you have to work hard as a Scottish company to prove yourself south of the Border, but it's going to be even harder (if Scotland becomes independent)."