COMMERCIAL REVIEW: The search for Scotland’s most inspiring businesses is here

Scotland’s private sector is in the midst of a growth spurt. In recent months, the nation’s manufacturing and services output jumped to its highest level since 2014, according to Bank of Scotland data.

Employment is also at a record high, as businesses shrug off the ongoing economic uncertainty and pursue their growth plans.

The businesses featured in the latest leg of LDC's Backing Business Ambition tour are among Scotland's most ambitious, helping to create numerous new jobs and wealth in Scotland.

Many hail from in and around Edinburgh and Glasgow, Scotland’s economic epicentres.

For some, location is everything. Whisky packaging specialist McLaren Packaging has maintained a laser focus on the local marketplace, selling to the top whisky producers on the company’s doorstep.

"We’re ideally situated in the central belt of Scotland, just an hour’s drive of most of the major bottling halls," says Michael McLaren. "We’re one of the largest employers in the area."

For software group Altia-ABM, geography matters less. The business, which sells to police forces and governments all over the world, is instead proving that Scottish firms have global ambitions – although the pool of talented local graduates is helpful, says boss Ian Watson.

Edge Testing, which makes sure new software is released without bugs, is also expanding aggressively.

It has "as many clients south of the border as we do in Scotland," says Brian Ferrie, the co-founder.

For CMS Window Systems, which provides energy-efficient windows, doors and curtain walling solutions across a wide range of sectors including commercial construction, social housing, new build housing and trade, it’s the firm’s sustainability ethos that has made a difference.

"From day one we have made a sustained effort to ensure environmental, social and economic sustainability is fundamental to every part of our business."

CMS Window Systems seize a new window of opportunity

CMS Window Systems is unique in the window and door industry for demonstrating how environmental, social and economic sustainability can underpin a successful manufacturing business.

Strong partnerships with key local authority, housing association, main contractor, specifier, house builder, trade and retail partner clients are key to the success of the Cumbernauld-based firm, ensuring sustainable growth is underpinned by its core values of continual improvement, commitment, teamwork and integrity.

From inception in 2006 to a turnover of £35m took just over a decade and in May 2016 investment from LDC was raised to help meet future growth ambitions.

"The timing of the investment couldn’t have been better" says Managing Director Andy Kerr. "With the new board and senior management team’s expertise complementing the experience we already had within the company, we have rapidly benefited from the new ideas generated.

"One of our key areas of growth is the expansion of our trade offering, a very exciting opportunity, which is driving us towards becoming one of the largest manufacturers within our sector in the UK."

Turnover this year will exceed £35m and growth plans include expanding the geographical reach of CMS’ PVC division, allowing it to follow the example of the company’s aluminium division and operate UK wide.

Altia-ABM chases financial fraudsters out of the shadows

THE adage goes, if you want to find a criminal, follow the money. Altia-ABM is a software company that specialises in doing just that. It can track transactions through documents, finding buried information and ill-gotten gains.

"Police forces, governments and tax authorities all over the world use us to conduct financial investigations," says Ian Watson, managing director of Altia-ABM. "The end game of our software is to provide the evidence to build up a robust criminal case."

Watson can’t talk about the cases that his company has solved, but says it has been used for "some big economic crime investigations and tracked NHS fraud." The Glasgow-based business has recently opened an office in Canada to capitalise on the international opportunity.

"Our software was designed for use in the UK, and the UK’s police and criminal investigations are seen as a gold standard in the world," says Watson. "We’re now focusing on Europe and the Commonwealth."

The business, which will turn over £5m in 2017, is currently growing at 25pc a year.

McLaren has the whisky packaging business wrapped up

SCOTLAND exports £4bn worth of whisky each year and for these bottles to arrive safely at their destinations, they have to be safely packaged.

McLaren Packaging, which was founded in 1979, produces the corrugated cases that help this precious cargo reach more than 150 countries around the world.

It started out making the partitioned boxes that help bottles survive bumps along their journey – and any changes in temperature – but now also makes the branded composite tubes and rigid boxes that help premium bottles stay safe while looking good.

"We are a family run company supplying small, independent operators through to large multi-national organisations," says Michael McLaren, whose father founded the company.

"We’re drinks packaging specialists and have expanded beyond whisky and spirits into mixers, beers, and other ready-to-drink products."

The business is gearing up for growth, investing heavily into its rigid box making facility Blue Box Design in Stirling.

The state-of-the-art packaging plant will help the business reach its target of £20m in turnover by 2020.

No glitches at software specialist Edge Testing

WHEN Heineken, the Scottish Prison Service or the Student Loans Company launch a new piece of software – whether it’s an internal system or a platform for customers – they bring in Edge Testing to make sure it is bug-free.

The business, which was founded only a decade ago, rigorously tests software to make sure it has no malfunctions, and can withstand a high volume of users. Based in Bellshill, just outside Glasgow, this ambitious firm will turn over £13m this year, and aims to hit £20m in revenues by 2020.

"We prevent financial and reputational loss for our clients," says co-founder Brian Ferrie. "Every aspect of life has IT running it in some form, and it’s important that these systems are robust."

Software is a fast-changing industry, and Edge has created its own academy to train its people in the skills it needs to stay on top. It has diversified its customer base, through sales offices in London and Birmingham, and will grow organically over the coming years. "The ambition is to become one of the recognised pure-play testing providers in the world," says Ferrie.

"We’re already there when it comes to reputation, and our next goal is to be there in terms of size."

Helping Scottish firms to grow and succeed

SCOTLAND has a long legacy in the oil and gas industry but the business landscape here is evolving.

New industries began emerging after the recession and there are many successful technology businesses here now, such as travel giant Skyscanner and Fanduel, the fantasy sports company.

And while Scotland has a fantastic heritage in food and drink – off the back of its whisky industry – many businesses are now forging a global reputation for their produce.

LDC, which has investment professionals based both in Aberdeen and Edinburgh, has backed a wide range of businesses here.

Some hail from traditional industries, like oil and gas support services firm Ramco in Aberdeen, while PDG Helicopters, the UK’s leading aerial infrastructure support services company, based in Inverness, has invested in its fleet to keep up with growing demand for its services.

Scotland is a natural home for LDC, because of the dual nature of its business community.

It is peppered with legacy firms which have stood the test of time, but also entrepreneurial early-stage and mid-market companies. Firms here thrive because of the talent pool created by local universities, the availability of bank and public sector finance, and the fantastic quality of life.

Over the past nine years, we’ve invested more than £100m in Scottish businesses, currently supporting more than 500 jobs. We’re committed to maintaining this level of support to continue to drive the Scottish economy forward.

Mark Kerr, Director and Head of LDC in Scotland

To keep up to date with the Backing Business Ambition tour go to
www.ldc.co.uk/bba2017