By Scott Wright

A BRITISH mechanical watch brand has cited the Scottish Government’s commitment to re-joining the European Union (EU) as a key factor in its decision to move its headquarters to Perth from Henley-on-Thames.

Fast-growing Marloe Watch Company, founded by Scot Gordon Fraser and Oliver Goffe, declared that a Scottish base “sits better with our values” as a pro-Remain organisation, and expressed the view that Brexit “certainly closes some doors for British business”.

The company has effectively doubled the size of its headquarters with the move to Perth, where it currently designs its watches. Its decision comes on the back of what it said has been strong demand for its “heritage” timepieces since its launch in 2015, which has put it on target to turn over nearly £1 million this year.

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While noting that the headquarters move is part of a planned expansion strategy, it said Scotland’s stance on EU membership was the “final trigger” in the decision to establish a new home north of the Border.

Mr Fraser described the firm as being “very much in the hopeful category” when asked how confident it is that Scotland will ultimately rejoin the EU.

He told The Herald: “We are more aligned with Scotland’s current positioning on the EU. They stand behind the position that the EU is positive for business and we share that view. We are a for-everyone company, not a British-only company.”

He added: “Our mechanical watches speak to people worldwide and we’ve seen incredible variety in the places our watches end up, from the US to Europe, Asia to Russia, we have our hand-wound watches on wrists in all nooks and crannies of the globe. That is what we love about this sort of product and we are obviously more interested in being open and accessible to everyone, than being shut off and insular.”

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Marloe currently ships 15 per cent of its exports to EU countries and is aiming to build its presence in the market further. But it is concerned that future trade tariffs between the UK and EU may hamper its ambitions.

Asked if the firm was concerned it may face a backlash over its move to Scotland, Mr Fraser said: “Whilst we have zero concern about backlash due to our pro-Remain stance (we know our customers well), we were slightly worried about some of the people local to Henley being disappointed they were losing a local (to them) company.

“But the benefits for MWC moving to Scotland outweighed these slight worries significantly. Our creative arm is in Scotland and we already have two native Scots in our company.

“The decision to move our operation up here was to try and secure the stability of our company going forward. We have no idea what will happen with Brexit, no-one does. But the level -headed narratives that our FM (First Minister Nicola Sturgeon) is delivering, often in the face of vicious opposition and derision, is enough for us to place our business in Scotland and feel comfortable about our future.”

Marloe’s move was announced as the UK Government created deep concern in the Scottish business community with its plans for a points-based immigration system.

Marc Crothall, chief executive of the Scottish Tourism Alliance, declared the new system was now the “biggest threat” to the sector, which depends heavily on a migrant workforce from the EU. Tracy Black, director of CBI Scotland, said the plans will “pose real challenges for businesses”. Ms Black noted sectors such as hospitality, tourism, agriculture and care will be “concerned about how they can recruit people across all levels of skill they need, not only to grow but to fulfil existing commitments.”

Asked for the company’s view on the immigration policy, Mr Fraser, who is originally from West Lothian, said: “Our country runs on people from non-UK shores, whether it be the services industry, NHS or private companies. We use DHL for our shipments and we have the absolute respect and admiration for our drivers, each day of the year getting our watches into the hands of our customers, and our drivers are of non-UK nationality.

“They are the most kind, generous and dedicated people you can find. That we might have to exchange these hard working people for no other reason than some master plan for an insular and inwardly facing country, makes no sense to us.”

Marloe, which raised £600,000 from a crowdfunding drive last year, said the move to Perth means it now has an immediate need for staff and plans to recruit locally. It booked a net profit of £45,000 on turnover of £350,000 in the year to March 31, having seen profits leap by 488 per cent between 2015 and 2018.

Mr Goffe said: “We are focused on ambitious growth but want to avoid becoming a behemoth that loses touch with its customers and sight of our values. At the moment, we are working towards employing a small team of talented people to produce products that change the way people think about watches.”