FAMILY BUSINESS MATTERS! - Martin Aitken & Co

maconewsThe newsletter from Martin Aitken & Co Issue 16 Summer 2011FAMILY BUSINESS MATTERS!Martin Aitken & Co sponsors the Scottish Family Business AssociationAdrienne Airlie & Martin StepekUNDERSCORING its long-standing expertise in assisting familybusinesses to thrive in challenging times, Martin Aitken & Cohas agreed to be a co-sponsor of the Scottish Family BusinessAssociation (SFBA).And this issue of the newsletter focuses on family business, whichour Senior Partner Adrienne Airlie calls “the lifeblood of theScottish economy”.SFBA, which reaches some 25,000 businesses, offers specialist help,support and skills to family businesses to enable them to grow andflourish over successive generations.Indeed, family businesses are of key importance to the economy inScotland and the UK because:* 45% of the UK’s GDP is produced by family enterprises;* 50% of the private sector workforce in Scotland is employed byfamily businesses;* In the latest Government SME survey, 71% of Scottish businessesdescribed themselves as family businesses, reflecting the Europeannorm where 75% of businesses are family firms;* According to research done by Edinburgh University, 41 ofScotland’s Top 100 businesses are family-owned and 25% of the100 largest businesses in Europe are family firms.Adrienne Airlie said: “Family businesses are the lifeblood of theScottish economy, not only financially but culturally and we aredelighted to be working with SFBA.continued on page 2...

2 3FAMILY BUSINESS MATTERS!...continued from page 1“From partnerships to limited companiesand PLCs operating in all parts of the privatesector, family businesses throughout Scotlandface identical challenges such as succession,governance, internecine squabbling andmanaging the business of the family.“Thanks to our experience over the years ofadvising clients in these matters, we believewe are at the forefront of family businessconsulting and we are pleased to play ourpart in helping to strengthen the survivalrates of Scottish family businesses.”SFBA’s Chief Executive Martin Stepekobserved: “It’s inevitable that familybusinesses - with their mix of generations,active and inactive shareholders, andfamily and non-family employees - will facecomplex conflicts which, if not addressedskilfully, may destroy both the business andthe family.“At the SFBA, we know it’s crucial that abusiness family learns to prevent or managetheir differences in order for their businessto continue and flourish through thegenerations. That’s why we are delightedMACO is partnering us with invaluablesupport for family businesses in Scotland.”Mr Stepek believes Scotland’s familybusinesses are so pivotal that they couldeven solve Scotland’s unemploymentproblems.He argued: “There are over 200,000 peopleunemployed in Scotland at present. Thepublic sector is experiencing the mostsevere cuts in living memory and the privatesector is being asked not only to mitigatethe jobs lost in the public sector but also toTOP CRIME WRITER IS MARTIN AITKEN CLIENTCraig Russellpicture © Jonathan Russellreduce the current number of unemployed.“Family businesses already employ half theprivate sector workforce and if each familybusiness employed three more people, it is afact that there would be zerounemployment in Scotland.”And he has some trenchantmessages for the new SNPadministration.“If 71% of all businesses arefamily-owned, I believe 71%of the budgets of ScottishEnterprise and Highlands &Islands Enterprise should bedevoted to family businesses.“Furthermore, I believe weshould urge both organisationsto take on SFBA as consultants,educators and trainers tolead the professionalisation ofScotland’s family businessesin ownership, leadership andgovernance.”Along with Martin Aitken& Co, SFBA will also besupported by the Bank ofCRAIG Russell is one of the country’s topcrime writers. A Martin Aitken client, he’sthe author of the best-selling and criticallyacclaimedJan Fabel thrillers set in Hamburgand the Lennox thrillers set in 1950sGlasgow.His nine novels have been published intwenty-three languages worldwide, somehave been made into films and he has pickedup a number of top awards – including thehighly prestigious Polizeistern (Police Star)from Polizei Hamburg, the only non-Germanever to receive this accolade.Before his first novel Blood Eagle waspublished in 2006, he worked as a policeofficer and freelance writer.Literary critics greatly admire his work.“Crime writing par excellance” and “a greatwriter at the top of his game” are just twoof many complimentary quotes. But how didhe make the move from writing 30-secondTV commercials to being an award-winningnovelist?“It’s quite easy to move from freelancewriter to writing novels; it’s not a radicaltransition,” said Craig. “When you workas a freelance writer, you’ve got to writeScotland, KPMG and Wright, Johnston& Mackenzie over the next year. Thesponsorship will be formally launched later inthe summer.Adrienne Airlie & Martin Stepekin so many different styles. Working oncommercials or writing direct mailshotsdevelops disciplines of enormous value.You’ve got to get immediate attention soI apply the same principles to my books.You’ve got to grab the reader in the firstcouple of pages.”He has written six Fabel and three Lennoxbooks. The latest Fabel, A Fear of DarkWater, and the newest Lennox, The DeepDark Sleep, are bothpublished in June andhe’s starting on his fourthLennox next year.His Fabel novels wereinspired by his interest inthe language, culture andpeople of Germany whilethe gritty Lennox novels,set in 1950s Glasgow, areinspired by his fascinationfor the unique characterof the city.Producing nine books infive years suggests he hasto be both focused andmotivated in his writing.“Yes, you have to be disciplined and I aim foranything between 1500-3000 words a day. Iforce that kind of deadline on myself. UnlikeHMRC BUSINESS RECORD CHECKSHMRC recently announced this as aproposed new initiative, but since thenthey have scored another own goalby starting these checks earlier thanoriginally planned. In addition, they havecommenced these checks without tellinganybody beforehand! This is hardly acustomer-friendly move and HMRCconcede that they should have informedall concerned of their change of plan.Rather than consulting fully withbusinesses before commencing thechecks in autumn, HMRC have alreadystarted them on a “test and learn” basis.This means that no penalties will becharged if poor records are detected,although HMRC have failed to make thistotally clear when notifying businessesthat their records are to be checked.This seems to be another example of ahigh-handed and insensitive approach byHMRC, underscoring our message thatyou should urgently review your recordkeepingto ensure it can withstand anynew scrutiny.other writers, I tend not to re-write toomuch. I’m very spontaneous – it comes outpretty much as I want it to because it’s allfixed in my head.”This unwavering discipline even extends tothe kind of atmospheric music playing in hisoffice in the background as he writes...and itvaries depending on the genre to help himcreate period and sense of place.“If I’m writing Fabel,I’m usually listening toScandinavian jazz, maybesomething by HerbertGroenemeyer. But if it’sLennox, it’s totally different– perhaps Edmundo Rosor Mel Torme.”The first televisionadaptation of a JanFabel novel, broadcaston German national TV,attracted an audience of sixmillion viewers. Craig wasinvited to the Hamburgfilm set and describes onedisconcerting incident.“The film company showedme stills from what had already been filmed.And that was where it really did start to feelstrange. Absolutely every photograph wasRichard Greenimmediately identifiable as the image thathad played in my head as I had written thenovel.“There was one in particular, of the studycum-libraryof a suspect, that really freakedme out a little: it was as if someone hadreached into my head and pulled the imageout from my brain. It really was weird to seesomething that had only ever existed in myhead recreated in almost perfect detail.”And how far back does the relationship withMartin Aitken & Co go?“Larry Sellyn was our accountant for thefreelance writing business in which my wifeWendy is a partner. In 2006 Elaine Dyer tookover from Larry. Her role isn’t just that of anaccountant; it’s more one of a counsellor. Wediscuss where we’re going, what our plansare. She’s a great sounding board and wehave a fantastic, close relationship.”Finally, it’s not often that the Martin Aitkennewsletter has a genuine exclusive, but Craigrevealed that he will move from Fabel and1950s Glasgow to a wider canvas that maynot involve crime. Remember – you read ithere first!Our pictures show Craig and the front coverof his new book. You can follow him on hisFacebook page, Craig Russell Books.

6WALL TO WALL – VALLANCE BEATS THEM ALL!VALLANCE Discount Carpets have been serving the south side ofGlasgow for over thirty years.Open seven days, their proud claim is “wall to wall – we beat themall”...and they passionately believe that being an independent familybusiness gives them a competitive edge over the many multinationalswho cannot maintain close customer relations in a corporateenvironment. They also believe they have escaped the worst ofthe recession by concentrating on four key areas - low prices, afine professional reputation, customer loyalty and friendly personalservice.Their products span both domestic and commercial flooring, explainsLaurence Vallance who started his business in 1979 with one smallunit on Clarkston Road. Over the years he has expanded, acquiringthe neighbouring four shops to create a spacious and well-stockedshowroom.“This is a good area to do business,” he explained. “It’s a nice,suburban location and we have a lowcost base.“We provide all qualities of carpets, rugs,vinyls and wood flooring at discountprices. We have literally hundreds ofcarpets and vinyls in stock. This ensuresthat customers who are tight on timecan have their chosen carpets fitted intheir homes within a few days of visitingour store.son Jonathan. And keeping the business a family affair works very wellfor them.“Family business is fun and it’s lovely to work in such a close-knitfamily group,” commented Laurence. “We all get on very welltogether and it’s not just a business to us – it’s more a passion, aninterest. We have spent the past thirty years developing strongrelationships with our customers and we believe that the foundationof our success is not only in our products but also in our ability tolisten to the customer and deliver what they want.“We are very customer-focused” agrees Maureen, originally a PrimaryTeacher who helped out with the books and VAT. But she’s now fulltimeand glad to have left the classroom behind.The third family member is Jonathan, a former civil engineer, whohas taken the company in new and exciting directions. Havingworked in the construction industry, he is passionate about growingthe commercial side of the business as well as maintaining therelationships his father has built up over the years. He’s the expert onluxury vinyl tile flooring, such as Karndean, which has become veryfashionable in the last few years, combining the best of design andtechnology in one stylish product.But that’s for tomorrow. Today Laurence is one of the bestknownpeople in the area. “Everyone knows Laurence aroundhere,” said Maureen. “If he nips next door for a message, he’s awayfor hours because he gets button-holed by so many people. Ourcustomer base comprises three generations - he did their gran’scarpets, their mum’s and now he’s doing the grandchildren’s!”And their customers aren’t restricted to the south side of Glasgoweither – they’re worldwide! One customer, in Palm Springs, USA, gotthem to ship over carpets for his home and business in a containerand Laurence was happy to oblige.Serendipitously, the Martin Aitken connection started last year as theresult of a casual conversation with Senior Partner Adrienne Airliewho at that time was a customer.“I happened to ask her a question about the business,” said Laurence,“and she immediately explained a number of options to me. I quicklyrealised she was sharper and more switched on than the accountantwe had at the time, so we moved across to her and her team. She’svery approachable, knowledgeable, enthusiastic and has been greatfor the business.”7Laurence, Maureen & Jonathan Vallance“We can provide for customers on anybudget but, most importantly, we takegreat pride in our work, our fitters arefirst-class and we personally guaranteethe perfect installation of our products.It’s an unbeatable combination.”Assisted by two staff and four selfemployedfitters, there are threeDirectors in the company – Laurence,his wife Maureen to whom he’s beenmarried for over thirty-four years, and“I really enjoy working in the business. Mum and Dad give me freerein to do what I think best,” he said with a smile.It’s clear Jonathan is extremely personable and efficient as he dealswith customers both in the shop and on the phone. Maureen said:“He’s wonderful with customers. You wouldn’t believe the numberof people who compliment us on our son, so we must have donesomething right!”“He’s the future of the business” revealed Laurence. “In terms ofsuccession planning, Jonathan will eventually take over and we’ll havea much reduced role...so I can spend more time on the tennis court!”Between dealing with the steady stream of happy customers,handling phone calls, taking measurements and placing orders;Jonathan, the bright future of this thriving Glasgow family business,had the last word. “We are a friendly, family-run, independentbusiness that looks after its customers, giving old-style service anddoing an excellent job. We just love what we do.”Vallance are happy to offer readers of the newsletter an additional10% discount on all stock.Vallance Discount Carpets Ltd, 49 Clarkston Road, Glasgow G443BQ, (Tel 0141 637 0848)SP COLLECT OFFERS DEPENDABLE DEBT COLLECTIONSTIRLING Park LLP, an established firm ofSheriff Officers and Debt Collectors and clientsof Martin Aitken & Co, has launched a newcompany, SP Collect Ltd.It’s a wholly-owned subsidiary of the parentcompany and has been established to focus onconsumer and commercial debt collection.Stirling Park started as Jack Lewis in 1924, laterbecoming Jack Lewis and Sons and was foundedby the grandfather of Jonathan and Adam Lewis,two of the partners in the business today. In the1980s it changed to Stirling Park and was boughtby Swedish-owned Intrum Justitia in 2002 beforea management buyout in 2009 saw it revert toScottish ownership. Today the firm has over onehundred and fifty highly-trained staff based inseven offices throughout Scotland.It’s responsible for collecting in excess of £350m of debt every yearon behalf of a range of clients including local authorities, legal firms,SMEs and large private sector organisations including banking andfinancial institutions.Adam Lewis, Ronnie Murison & Kevin DillonAdam Lewis said: “We formed SP Collect because the recessionhas had an enormous effect on businesses, with many organisations- including some household names - unable to survive the financialstorm. Good credit control is essential to any business and therecomes a time when they simply have to pass trickier debts to a thirdparty for a strategic approach. Third party intervention helps pushthe creditor up the pecking order for payment while a healthy cashflow provides stability to any business.”His colleague Ronnie Murison continued: “A lot of businesses arenot on top of their credit control and that’s when they come to SPCollect for assistance. Whether it’s simply an overdue account or adifficult debt, we will retrieve their money as quickly, courteously andefficiently as possible.”He added: “We pride ourselves on our reputation for beingrespected, diligent professionals who operate with total integrity andmake a difference to the people we deal with.“Our team have all been trained in consumer collection strategiesand consumer litigation. They know exactly which course ofaction will bring about the quickest and most efficient resolutionto the problem. All our collections are conducted professionally,courteously and purposefully and, uniquely, our innovativetechnology allows clients to assess and monitor their cases online.”Martin Aitken Partner Mark Tenby oversees the Stirling Parkaccountancy and tax work, assisted by Alasdair MacDougall whocovers pensions and financial services.“They’re really on the ball,” says Ronnie. “They’re very efficient,accessible and always give us sound advice – they’re always backwith the answers fast.”For more information please contact Ronnie Murison on 0141 5655765 or Email: r.murison@spcollect.co.ukALL IN A NIGHT’S WORK!At midnight onSaturday 14 May,while most sanepeople weretucked up in bed,Martin AitkenPartners JayneClifford & ElaineDyer were juststarting out on a26.2 mile powerwalk throughthe streets ofLondon, being 2 of the 17,000competitors in the 2011Moonwalk!The Moonwalk is an annualevent organised by Walk theWalk, a charity aimed at raisingmoney and awareness for breastcancer.The charity has grantedfunds to many NHS hospitalsthroughout Scotland toenable them to purchase scalpcooling equipment - machineswhich give the opportunity ofretaining hair whilst undergoingchemotherapy treatment.Walk the Walk have also chosento support Maggies Centres inScotland by being the principalfunder for their second centreat the Gartnavel Hospital inGlasgow.Thanks to the tremendoussupport from family, friendsand clients, Jayne and Elaineraised £2,136.20 for this veryworthwhile cause.

5 THINGS YOU DIDN’TKNOW ABOUT...CHRISTINEBURNETT5 things you didn’t know about ChristineBurnett who is PA to Adrienne Airlie,Senior Partner in the firm.through the ranks and considers herselfan all-rounder (including her shape !!).Her roles have included accounts and taxassistant and Secretary to Bill Lockhart andLarry Sellyn.3. Christine celebrated her50th birthday recently by taking partin a “Zip-slide” over the Clyde to raisemoney for the Prince and Princess ofWales Hospice. She was cheered on byher partner James, daughter Rachael and3-year-old granddaughter Chloe whothought her granny was soooo cool!4. She enjoys yoga which she insistsis not to keep “fit” but to keep “sane”.81. Christine was a Sunday SchoolTeacher and also an Officer in the JuniorSection of the 1st Duntocher Boys’ Brigadein her early teens/twenties.2. She joined Wm Lockhart & Co(who later merged with Martin Aitken &Co.) in March 1978 as an Office Junior/Receptionist. She worked her way upChristine & Chloe5. Christine was very lucky inFebruary when she was in Christchurch,New Zealand, visiting her sister withher mum. They got caught up in theearthquake and although she certainlyfelt the earth move, she didn’t get hurt.Her heart still skips a beat, however,when heavy trucks shake their way downSeaward Street!!WIN A BOTTLE OF AWARD-WINNINGGLENDRONACH WHISKYWe’ve teamed up with GlenDronach, the Aberdeenshire distillery that produces anaward-winning range of richly-sherried single malts, in this easy-to enter competition.The prize, for three readers, is a sumptuous bottle of GlenDronachtwelve-year-old.MARTINAITKEN&COCharteredAccountants&Business AdvisersThis superb, richly-sherried single malt is matured for at least twelveyears in a combination of the finestSpanish Pedro Ximinez and Olorososherry casks. Non-chill filtered,of natural colour and bottled at43%, the GlenDronach 12 year-oldOriginal is a sweet, creamy dram tobe savoured at leisure.To enter the competition, all youhave to do is answer this question.Which was founded first - The GlenDronach distillery orMartin Aitken & Co?Send your entries to GlenDronach Competition, Martin Aitken & Co, CaledoniaHouse, 89 Seaward Street, GLASGOW G41 1HJ – and include your email address,postal address and phone number. The closing date for entries is July 15.Good luck!Caledonia House89 Seaward StreetGlasgowG41 1HJ0141-272-00000141-272-0011ca@maco.co.ukwww.maco.co.ukPrinted on recycled paper as partof MACO’s green initiativeCONGRATULATIONS!ExamsAATBen BlackFNPF (Financial Planning)BGT (Budgeting)ACCABarry EdwardsP7 Advanced Audit & Assurance(Now ACCA qualified)Joyce YoungP5 Advanced Performance Management(Now ACCA qualified)Kevin DuddyP5 Advanced Performance ManagementKeith HarrisP1 Professional AccountantIain JohnstonP1 Professional AccountantPromotionsAlastair HonnetPromoted to Manager in FebruaryBirthdaysMegan Murray celebrated her 40th birthdayon 19 JanuaryKeith Harris turned 30 on 1 AprilWeddingsAmanda Graham became Amanda Peacock inDecemberBabiesLaura O’Brien gave birth to a baby girl, Allyssa,on 18 NovemberLorraine Hastings had a baby girl, Erin, on 4JuneJim McInroy became a grandfather for the firsttime to Rory McInroy on 12 April and is nowalso a Justice of the PeaceBest Wishes to All!