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> REVIEW 2007 helping you succeed


01 >Foreword

The Annual Review provides a timely reminder of just how far Brodies has travelled in twelve months. This year, however, I believe we have surpassed all previous achievements.

Joyce Cullen - Chairman

We are looking forward to developing our valued client relationships over the coming year, and, of course, welcoming and getting to know new contacts.

Record growth, opening a Glasgow office (joined by over 120 new colleagues), continued client and employee satisfaction and IT infrastructure strategy are all significant success stories. They owe much to the talent and skills of our partners and staff who attract and retain clients, including major international companies, national public sector organisations and a wide range of other businesses and individuals. This publication really gives us the chance to illustrate many of our clients’ own successes. The deals, developments, infrastructure and new communities that are being created this year by people we have advised are genuinely impressive. Together they highlight a new drive and confidence in the country.

At the end of a very busy year it is rewarding to have had our achievements recognised by those who are astute observers of the UK legal industry. We are delighted to have enjoyed success in a number of UK-wide award categories and praise from key commentators in the press and top legal directories alike during 2006/7. Brodies is seen as a dynamic, progressive and ambitious practice. Its business focus and client commitment underpins every aspect of its work. I am delighted that this approach is reaping rewards for our clients, employees and, increasingly, for the Scottish economy. We look forward to developing our valued client relationships over the coming year, and, of course, welcoming and getting to know new contacts as we continue to be the commercial law firm our clients want us to be.

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02 >Review

Bill Drummond - Managing Partner

Brodies’ performance over the year under review has been exceptional. In a remarkably short space of time a series of major achievements have been accomplished, each of which, taken alone, would be impressive. Cumulatively, they represent a highly satisfactory outcome for an intensive year’s work. In the past year the firm has attained record turnover and profit growth, welcomed the 85-strong partnership and staff from full service commercial law firm, Bishops Solicitors LLP, achieved a physical west coast presence with the launch of our new Glasgow office and seen a number of significant lateral hires and internal promotions to boost our already market-leading practice areas. Each of these developments has been managed successfully whilst maintaining close client relationships and, as always, ensuring premium client service. The firm’s focus on providing high quality legal services, delivered to clients exactly to requirement and in a commercially competitive way, is one for which the market has an undoubted appetite. Brodies has won a raft of new national clients in a tough climate, while continuing to develop relationships with valued long-term clients throughout the UK.

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We have seen annual turnover growth of more than 10% for each of the past seven accounting periods. The latest results, highlighted in the ‘Performance’ section which follows, record substantial turnover increases across all main disciplines. It has also been a year of significant investment in talented people, innovative IT infrastructure and property and it is pleasing to report that, despite such development, we have outperformed our targets. This year we increased our partner numbers to 52, leading the way as the largest top-tier firm based solely in Scotland. The partners have been carefully selected for their commercial acumen and commitment to the firm’s strong partnership ethos. They extend the quantity and quality of client service for each discipline and introduce new expertise in sectors such as banking and finance, corporate finance and property. Determined to provide clients with the highest possible levels of quality and service, the firm is continuing to drive and achieve its ambitious agenda to recruit, promote and develop the best legal talent in Scotland. Welcoming the former partners and staff of Bishops Solicitors LLP to the firm was the largest and most significant Scottish law firm deal of 2006. The success of the move owes much to the common culture of both, sharing a commitment to client service, a focus on quality and a drive to grow.

The Glasgow presence, which celebrated its first anniversary this August, is now a 12 partner, 100+ staff office regularly receiving instructions from new corporate clients and is involved with many of the country’s major public and private projects. Brodies’ permanent west coast presence has encouraged expansion of both client and legal staff numbers across all disciplines, introduced major cross-office deals and strengthened the expertise of teams in both cities. We remain as committed to targeted growth as ever, and now have a momentum which is hard to match in any Scottish law firm. The pace of deals done by clients, with our lawyers in support across the UK and internationally, is relentless and our own business planning is geared to grow with our clients’ success. Our well thought-out three-year business strategy gives a commercial base to the firm, with agreed goals and targets to be achieved. Our growth is focused on the areas of most importance to the Scottish economy. Law firms can be key to the success of businesses and organisations and a strong legal profession is a key component of a vibrant services sector, essential to the wellbeing of this economy, creating employment and wealth and cultivating business for local companies. As a result, this year we have chosen to focus on each of the sectors at the

forefront of our clients’ own activity, highlighting the work we have done to help them achieve success in their respective industries. Once again we are delighted to report that our growth and commitment to providing the highest quality client service has been acknowledged by a number of leading UK-wide industry awards. This included a placing in the top three for “UK Regional / National Firm of the Year” at The Lawyer Awards 2007 and winning “Private Client Firm of the Year” at The Firm Magazine Law Awards of Scotland 2007, “Legal Practice of the Year” at the Property Executive Awards for Excellence 2007 and “IT Team of the Year” and “Best Legal Automation Project of the Year” at The Legal Technology Awards 2007. Most recently, Brodies was runner up in the “Best Managed Firm” category at The MPF European Practice Management Awards 2007 - the only Scottish firm to be short-listed. At the heart of our success is long-term strategic planning, consistent client care, dynamic growth and highly motivated employees and we look forward to driving these forward in the interests of our clients in the year to come.

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03 >Performance

Our People

Our Turnover

Over

03/04

450 £18 55 £20 275 £30

£16.6m

total number of staff

04/05

.3m

05/06

partners

.9m

over

06/07

qualified legal staff

.0m

2007 saw the seventh consecutive year of double digit growth, with a 43% rise in revenues and a 33% increase in profits, highlighting the effectiveness of previous investment decisions. Brodies ended the year as the outstanding firm in its region in terms of presence, focus on core markets and sustained profitable growth. The period to 30 April 2007 saw turnover rise from £20.9m (v30.1m*) to £30.0m (v43.1m*), with profit for the financial year well ahead at £11.7m (v16.8m*), up from £8.5m (v12.3m*) in 2006. Profit per equity partner also rose to £333k (v478k*), up from £295k (v424k*). Headcount at the year end stood at 400, including 52 partners, over 250 qualified legal staff and more than 100 support and administrative staff. As we go to print, our total staff figure (including dedicated support services) is now in excess of 450, with over 275 qualified legal staff and 55 partners. The firm ended the year with a positive cash balance of £852,000 (v1.2m*), despite the considerable investment made during the year in people, premises and IT infrastructure. Abbreviated Profit and Loss, Balance Sheet and Cash Flow schedules feature as an appendix to this Review. Deloitte & Touche LLP are retained as firm auditors.

“Brodies LLP has achieved ambitious growth in 2006... the firm’s expertise reaches across all areas.” The Legal 500 2007

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Banking & Financial Services

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Transport

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Urban Regeneration

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Public Sector

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Energy & Utilities

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Health

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Retail & Leisure

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Education

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Technology

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Property

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Private Client

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CSR

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Accounts

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Contacts

*Conversions are at October 2007.

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04 >Banking & Financial Services ICICI Bank UK PLC Whyte and Mackay is one of the largest producers of Scotch whisky in the world and is Britain’s largest producer of ownlabel Scotch. The announcement of its acquisition by United Spirits Limited for £595m (v854m*) represented one of the largest corporate deals in the country during 2007. Working with an international team of lawyers from Allen & Overy LLP, Brodies advised ICICI Bank UK PLC with its £325m (v467m*) debt facility to new owner, United Spirits Limited. The acquisition will allow United Spirits Limited to meet the increasing demands for whisky in India and progress its recent forays into China and Russia. The company is India’s biggest alcoholic drinks company and third-biggest in the world by sales volume after Diageo and Pernod Ricard.

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DnB NOR Bank ASA The The v1.1bn (£766m*) financing of the acquisition of the Marine Harvest Group by Norwegian company, Pan Fish ASA, was one of the biggest deals to come out of Norway in 2006/7. In addition to Marine Harvest producing many thousands of tonnes of salmon along the west coast of Scotland and the Western Isles, both groups are engaged in fish farming in several locations throughout the world, with a network of local subsidiaries in each region. Brodies was instructed by Norwegian law firm, Thommessens, to advise DnB NOR Bank ASA (as Facility Agent) on relevant aspects of Scottish law connected with the banking facility and the security package being put in place. The successful deal, described by the banks as the largest and most complex refinancing in the fish farming industry worldwide, made the newly merged group (trading under the name “Marine Harvest”) the world’s leader in the fish farming industry.

National Australia Group Europe Working for the National Australia Group Europe (owner of Clydesdale and Yorkshire banks) in the renegotiation of its telecoms contract required a fast acting legal team that could deliver complex advice and secure a contract against a challenging deadline. The five year deal with BT covers the supply of voice and data services to offices, data centres, branches and two large contact centres. In addition, it covers the supply of intranet and internet applications, remote access and security services.

“The advice we received from Brodies’ banking & finance team was first-class. It had a strong understanding of all the issues and provided us with commercially focused answers.” Sanjeev Dhuna - Partner Allen & Overy LLP

The Brodies team ensured that the contract complies with current and future Financial Service Authority regulation, and in particular the requirements of the new Markets in Financial Instruments Directive (MiFID).

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05 >Transport Ulster Bank A key Northern Irish company acquisition of a Scottish construction business was backed by Belfast-based Ulster Bank. McLaughlin and Harvey, an expanding building and civil engineering contractor, purchased Barr Holdings, of Paisley, in a strategic, multi-million pound transaction. McLaughlin and Harvey, one of Northern Ireland’s top 100 companies, was able to enter the Scottish market with its purchase of Barr Holdings, a profitable entity with a strong regional presence. The company intends to develop Barr in parallel with McLaughlin and Harvey. Ulster Bank was advised by a multidisciplinary team from Brodies, working alongside Belfast law firm, L’Estrange and Brett. Ulster Bank, as funders of the deal, benefited from Brodies’ detailed knowledge and quick responses, which helped to co-ordinate progress and speed up the transaction.

The Royal Bank of Scotland Group The Royal Bank of Scotland Group (RBS) is one of the largest banks in the world, with Brodies one of the firms advising on its technology contracts. Staff development is a key commitment for RBS, as it is for us. As part of Brodies’ relationship with the Group, the firm participates in an annual secondment programme with RBS Group Legal’s contracts team.

“Brodies has a wealth of experience advising on all areas of complex transactions. We value this expertise.” Christopher Shephard - Senior Manager Ulster Bank Business Banking

As a result, a senior solicitor from Brodies’ technology team recently returned from a three month secondment to RBS. The opportunity allowed for first-hand experience of the pace and complexities of working at RBS, and a greater understanding of the way in which a leading bank carries out its business. It also helped to build a closer relationship between Brodies’ technology team and RBS Group Legal. A seamless working relationship between client and legal adviser is central to Brodies’ approach, and, as such, the firm is a strong advocate of secondments, which we believe promotes positive, mutually beneficial partnerships.

Brodies has significant involvement in the insurance market with its litigators handling substantial claims for a range of UK insurers, brokers and the world’s leading P&I clubs.

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Clackmannanshire Council The new Stirling-Alloa-Kincardine rail link is reopening a 13-mile stretch of railway that will extend passenger services to Alloa for the first time in decades. The ambitious project will also reopen a key freight line to Longannet Power Station in Fife. Brodies is carrying out the compulsory purchase on behalf of Clackmannanshire Council of more than 70 separate parcels of land, and of rights to benefit the railway in three counties. Brodies is also assembling other land from public bodies, including the Council and Network Rail, to ensure a seamless title to the whole railway to smooth the way towards handover of the entire line to Network Rail. Brodies is handling compensation claims on behalf of the Council and is advising on a wide range of issues including property law, public and planning law, noise and vibration law and construction issues. The rail link project includes building a new station at Alloa and creating hourly passenger services between Alloa, Stirling and Glasgow. The freight services to Longannet will ease capacity on the busy Forth Rail Bridge. The free flow of people and freight opens up the opportunity for more employment and tourism across the entire area, with industry also being boosted by further freight services.

Scottish Borders Council The Waverley Railway Project will create a vital link by re-introducing regular passenger trains along the 35 miles of track between Edinburgh and the Borders, unused since 1969. Scottish Borders Council is promoting the project on behalf of Transport Scotland. Brodies is carrying out the compulsory purchase for this, which involves over 1,300 separate areas of land spanning three counties and involving commercial, development, residential and agricultural property. Scottish Borders Council chose Brodies to advise on land acquisition issues connected with the project because of its unrivalled experience in land, compulsory purchase and property work for new transport projects with the firm currently advising the country’s key rail projects, including the StirlingAlloa-Kincardine Railway and Airdrie-Bathgate Rail Link.

“It is Brodies’ ability to seamlessly combine its property lawyers with its planning, tax and other specialist teams to address our needs that impresses us most.” Steven Renwick - Project Manager (The Waverley Project) Scottish Borders Council

Jacobs The Airdrie-Bathgate Rail Link is a £300m (v431m*) project, funded by Transport Scotland and delivered by Network Rail. It will rebuild and reopen the route to passengers after 50 years of closure, once again providing a direct link to Glasgow and Edinburgh for communities in central Scotland. The link will create considerable opportunities for people along the route to access employment, education and leisure facilities and will attract inward investment to support economic development in the central belt. Brodies has supported Jacobs, one of the world’s largest providers of professional technical services, from the outset of this major project in providing land referencing services, service of notification and in assisting with advice throughout the Parliamentary Bill stage. The Act was passed in May 2007 to authorise Network Rail to undertake the work. The Brodies team is now assisting Network Rail with land acquisition and compensation. The compulsory purchase of land which this entails involved over 1,000 separate parcels of land and several thousand separate owners, constituting the largest compulsory purchase scheme carried out by a private firm in Scotland this century. The new rail link could generate more than £300m (v431m*) for the local economy according to a Scottish Parliament committee report. It will be a greener, more sustainable public transport alternative to the M8 for commuters and will contribute to easing traffic congestion in both Edinburgh and Glasgow.

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SZIPT A ship carrying plywood from China was at the centre of one of the largest international trade disputes before the Scottish courts in recent years.

BAA BAA is the world’s leading airport company owning seven UK airports, including three in Scotland - Edinburgh, Glasgow and Aberdeen.

When the original Welsh buyer of the cargo did not make payment, the original Chinese seller of the plywood sold it to another Chinese company. The cargo was arrested on arrival in Glasgow after a dispute, subject to Chinese arbitration, arose with the original buyer.

Brodies has advised BAA Scotland on some of the biggest public transport projects in Scotland including the Edinburgh Airport Tram Line, the Glasgow Airport Rail Link and the Edinburgh Airport Rail Link projects. Our team advised on all parliamentary, projects, construction and compulsory purchase aspects of the Edinburgh and Glasgow Airport Rail Link Acts which went before the Scottish Parliament in 2006 in advance of being given Royal Assent in 2007.

Brodies, instructed by the new owners of the cargo, successfully obtained recall of the arrestment, allowing the cargo to be discharged. However, to further complicate matters, the ship was owned by a French company which led to an underlying dispute in a French court over the right to claim freight, giving rise to a further related action in Scotland. Brodies’ shipping team, which has been increasingly involved in international trade disputes, negotiated a complex settlement agreement which required resolution covering Scotland, Wales, France and China.

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Scheduled to be operational by 2011, the Edinburgh Airport Tram Line will be the first to be built in the Edinburgh tram network and will run from Leith via the city centre to the terminal at Edinburgh Airport. The Glasgow Airport Rail Link is expected to run every 15 minutes from Glasgow Central Station to a new, purpose-built station at Glasgow Airport. Construction will begin in 2008 and is expected to be completed by the end of 2010.

Bookajet Bookajet has become one of the UK’s most established and highly regarded private jet operators thanks to the continued provision of high quality discreet and efficient flight services to a broad range of finance houses, high net worth individuals and celebrities. Recognising the growth in Bookajet and the increase in demand for bespoke jet travel, Swedish company European Flight Service (EFS) recently entered into joint venture arrangements with the Bookajet operation.

“Brodies has impressed the SAK project team with its enthusiasm and its ‘can do’ attitude.” Jackie McGuire - Head of Administration & Legal Services Clackmannanshire Council

Working closely with Brodies’ corporate finance team, the company has benefited from consistent, invaluable legal advice throughout a period of exceptional growth. The new joint venture will allow Bookajet to further its operations in Western European, Nordic and Russian markets from a fleet of 12 managed aircrafts - a figure which is expected to increase to forty over the next three years. Among the company’s ambitious expansion plans is the opening of three new offices - Moscow, the Middle East and the Côte d’Azur.

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06 >Urban Regeneration “Brodies’ innovative model and pro-active approach to the challenges of this project were instrumental in securing a successful outcome.” Ian Baird - Director Gladedale Partnerships Limited

Glasgow City Council A new ‘jewel’ is currently emerging at a neglected part of Glasgow’s riverside. Custom House Quay is a landmark £200m (v288m*) regeneration scheme that aims to rival the best of Europe’s city waterfront developments. Glasgow City Council, as part of the Clyde Waterfront Strategic Partnership, is driving forward the high profile residential, leisure and retail scheme alongside developers, Clydeside Properties. Brodies has been chosen by Glasgow City Council to advise on the detailed work it is carrying out with Clydeside Properties. The major long-term project requires specialist commitment from us, to ensure that the transformation of the riverside progresses as smoothly as possible through to completion. Custom House Quay will bring life back to an unsafe, unused and derelict area. The riverside revival will attract many thousands of tourists and residents, significantly boosting the economic prospects of Glasgow.

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Gladedale Partnerships Limited Oatlands, the £212m (v305m*) landmark regeneration project in Glasgow is bringing new life and energy to the Clyde waterfront, regenerating an area which had previously been a thriving neighbourhood but had become run down and semi-derelict. The project will create a vibrant new development on the south side of the River Clyde. Brodies advised lead partner on the Oatlands development, Gladedale Partnerships Limited. Through the scale and complexity of the project, the firm created ‘the Oatlands Model’ - unique new legal documentation tailored to cover the intricacies of the entire development programme. Glasgow City Council is the authority linking both projects, and is party to the agreements. The success of the legal model for Gladedale Partnerships at Oatlands has led to it also becoming the template for the Custom House Quay regeneration scheme.

BAE Systems A brand new community growth area is being proposed for Scotland’s biggest brownfield site. Redrow and landowner, BAE Systems, intend to create a development of 2,500 houses, a business park, shops and leisure facilities on the 2,400-acre (971-hectare) former Royal Ordnance Factory complex at Bishopton, Renfrewshire. The development will create more than 4,000 job opportunities, take 15 years to complete and effectively double the size of Bishopton. Brodies’ established strengths in planning enabled us to give legal advice on the intricacies of this project. When the Scottish Executive invoked rarely used powers to involve the public in a structured discussion about the planned community growth area, the team worked with the Redrow / BAE Systems project team on its contribution to that discussion.

The close collaboration between Gladedale Partnerships and Brodies has helped to keep Oatlands on course for completion by around 2014, driving forward new opportunities and a higher quality of life for thousands of Glasgow residents.

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07 >Public Sector Scottish Information Commissioner The Office of the Scottish Information Commissioner was created to enforce the access to information regime created by the Freedom of Information (Scotland) Act 2002 and the Environmental Information (Scotland) Regulations 2004. Kevin Dunion, the first Commissioner to hold that Office, is responsible for ensuring compliance amongst Scotland’s public authorities. In the first legal challenge to one of the Commissioner’s decisions, the NHS Common Services Agency appealed to the Court of Session against an order to release certain statistics relating to childhood leukaemia in Dumfries and Galloway. Brodies acted for the Commissioner in his successful defence of this appeal and is involved in preparations for the further appeal to the House of Lords in 2008. The Freedom of Information (Scotland) Act and the Environmental Information (Scotland) Regulations are opening up access to information about public organisations as never before. Brodies’ experience in these areas is positioning the firm as a leading and authoritative adviser.

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River Clyde Homes River Clyde Homes’ housing stock in Inverclyde grew by 8,000 overnight when the town’s Council tenants voted overwhelmingly to switch from local authority control to community control. The not-for-profit housing association is now working alongside tenants, employees and the Council to significantly improve housing conditions and the services in the surrounding areas. With the imminent transfer a thousand new affordable houses will be made available for rent and existing stock will win a new lease of life following major modernisation. The Change and Development Programme is designed to ensure River Clyde Homes supports its staff in a learning environment to encourage flexibility in meeting customers’ needs. Brodies’ training and development division, ‘Fundamental’, is advising the newly formed management team responsible for Inverclyde housing at River Clyde Homes. Fundamental has worked with senior staff to crystallise the core aims, values and goals of the company, and has designed a customised management development programme to maximise the team’s performance. The strengthened skills of the team are boosting the delivery of regeneration to the people of Inverclyde.

“In preparing for a fresh start and bright future for our customers and staff, River Clyde Homes wanted to establish its clear identity and positive new direction from the outset. We are delighted to have had such effective support from ‘Fundamental’ to help us achieve this. The feedback from all of our staff has been greatly encouraging and as a result of this early focus, I am confident we have laid firm foundations for an exciting and rewarding organisation.”

“The Commissioner has been particularly impressed by the advice and support provided by Brodies in relation to the small number of appeals against his decisions to the Court of Session and, subsequently, to the House of Lords. In addition, Brodies has provided guidance in this new area of law and training to his staff on matters such as judicial review and legal professional privilege. As such, it is viewed very much as ‘part of the team’.” Margaret Keyse - Head of Investigations Office of the Scottish Information Commissioner

Karen Neary - Chief Executive River Clyde Homes

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08 >Energy & Utilities Aberdeen City Council Due to open in 2009, the new Regional Sports Facility in Aberdeen will be a world-class sporting venue, capable of hosting international sporting events, with state of the art facilities for developing local talent and encouraging community participation in sport at all levels. The project is being delivered in partnership between Aberdeen City Council and the University of Aberdeen, with additional financial support from sportscotland. Construction work started in September 2007 on phase 1 of the development, which will result in a fantastic new centre with one of the largest indoor synthetic grass pitches in the UK, indoor and outdoor athletics training facilities, a fitness suite and performance gym, sports performance and science laboratories and indoor and outdoor spectator facilities. Brodies’ multi-disciplinary projects team has advised the Council on all aspects of the project including project and corporate structures, funding and financial options, the joint venture agreement with the University and the not-for-profit delivery and operations company, and the construction documents.

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Midlothian Council Midlothian Council serves a fast growing population of almost 80,000 residents, employing a 4,000-strong workforce. In line with the requirements of planning law, Midlothian Council is currently involved in a comprehensive review of its Local Plan which will set out its vision for development in Midlothian for future years. Brodies is supporting the Council on all aspects of the Local Plan review and this work includes providing detailed advice and representation at many of the public hearings which are being held to consider the proposed changes to the Plan. Brodies has been retained as preferred legal services provider to Midlothian Council as well as Argyll & Bute and Aberdeen City Councils for a range of work - the only Scottish law firm to secure more than one such mandate. Brodies represented Aberdeen City Council throughout its own Local Plan inquiry in 2006, testimony to Brodies’ strength in planning law and inquiry advocacy.

Glasgow City Council Glasgow is one of Europe’s most vibrant and cosmopolitan cities, with a population of just under 600,000. Working to ensure the delivery of effective, customer-driven services for the area, Glasgow City Council is currently undergoing a major strategic reconfiguration. Brodies’ consulting team is working with the Chief Executive at the Council in developing new support structures across each of the new Strategic Directorates. The key objective is to provide options that will be sustainable as it embarks on new methods of service delivery and as it moves towards a shared services environment. This involves developing associated structures, sub-structures and ways of working that will also position the Council to deliver against its key strategic objectives and major transformation projects such as the Glasgow Pathfinder project - aiming to establish a model of service delivery through simplifying procedures to adopt best practice and a common approach within and across organisations.

Shetland Islands Council A unique local initiative, using Shetland Islands’ world-class wind combined with its 25-year history as a UK powerhouse, looks likely to make the Island one of the UK’s leading centres for renewable energy. In January 2007, Shetland Islands Council’s windfarm company Viking Energy Limited entered into a groundbreaking partnership with a subsidiary of Scottish and Southern Energy (SSE Generation Ltd) for the development of a £600m (v859m*) 600 MW windfarm to be located on the Shetland mainland. The partnership is now working on obtaining the required planning permission for this. The team at Brodies worked closely with Viking Energy Limited in order to ensure a timely and successful completion of the partnership.

Nuclear Decommissioning Authority The North Highland Regeneration Fund has been set up to help the economy of the far north become less reliant on the Dounreay nuclear plant. The loan fund company, established by the Nuclear Decommissioning Authority, will encourage entrepreneurs to start up and grow in Caithness & Sutherland. The Dounreay nuclear complex, which currently contributes £200m (v288m*) to the economy, will be fully decommissioned by 2036. The Regeneration Fund plays a vital part in creating new sustainable jobs before that time.

“Brodies resolved several contentious issues within tight timescales and we have been impressed by its work, which has been vital to the whole process.” Bill Manson - Councillor Shetland Islands Council

Following a competitive bid, Brodies was instructed to provide legal services to the Nuclear Decommissioning Authority. The Fund has since been able to set off at a fast pace with initial capital of £500,000 (v717,000*). In its first months it has been in detailed discussions with many local businesses and provided loans to a number of existing companies, all now able to plan for expansion and new jobs.

The result should bring better jobs, higher educational attainment, landmark regeneration projects and a key positioning for the city as host to international events such as the 2014 Commonwealth Games.

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Yorkshire Forward Holbeck Urban Village is a flagship regeneration project just south of Leeds city centre. The £800m (v1.1bn*) scheme is leading the way in the UK as a wholly sustainable, forward-thinking renaissance development.

“We like that Brodies lawyers do not confine themselves to specialised areas, but instead are flexible and combine into groups which can address the legal service needs of identifiable market sectors.” Tom May - Head of Regulation and Procurement Scottish Water Business Stream

Innovative energy provision is at its heart, supplied through a combined heat and power plant that is to serve all 37.5 acres (15.2 hectares). The scheme is designed to bring affordable, fuel efficient, low carbon heat and electricity to residents and businesses. Brodies is advising Yorkshire Forward on all legal aspects of the combined heat and power scheme and is now also acting for five such plants throughout the UK. Renewable energy is increasingly important to the property and public sectors, which have stringent sustainability targets to meet. Combined heat and power effectively drives down energy costs and reduces carbon footprints, to benefit users and help with the control of climate change.

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Scottish Water Business Stream Change is flowing fast for Scottish Water Business Stream, the retail entity set up by Scottish Water to compete in Scotland’s soon-to-be-opened business market. From April 2008, its customers will be able to buy water and wastewater services from other retailers. Scottish Water Business Stream, which officially began operating in November 2006, has introduced a range of customer focused services, strong branding and an experienced board to oversee its activities and strengthen its positioning in a tough market.

“Brodies appreciates the issues that we face, exceeding our expectations against a challenging brief.” Stuart Muxlow Project Support Assistant of Holbeck Urban Village Yorkshire Forward

Brodies was chosen to provide a full range of legal services to the newly formed company, including corporate regulation, Freedom of Information Act advice, corporate finance, company secretariat and employment law guidance. Brodies’ experience in working with major utilities and new businesses has helped to propel Scottish Water Business Stream forward. The £300m (v430m*) turnover company is now working with businesses to help reduce water consumption through environmentally friendly solutions.

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09 >Health Cairn Energy When Cairn Energy made its intentions clear to float its Indian exploration and production business on the Bombay Stock Exchange and The National Stock Exchange of India, the resulting IPO of Cairn India became one of the mega deals of the year in Scotland and India, raising a total of $1.98bn (£948m / v1.4bn*) in the process. The size and scope of the IPO required a full raft of legal advice drawn from UK, US and India advisers. When Cairn made the call to Brodies for an extra pair of hands, our corporate team picked one of its trusted associates who then hastily boarded a plane to Delhi. What started as short-term assistance, turned into a four month secondment working closely with the Chief Corporate Counsel at Cairn’s Indian HQ, other members of Cairn’s in-house legal team and other advisers. All work was completed within a tight timescale to allow for the flotation to take place in January 2007. Our secondee very much enjoyed their experience with Cairn, which is now turning its attention towards developing operations in Bangladesh and Nepal.

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“Given the length and complexity of the Indian IPO process, our in-house legal team was fully stretched for almost a year. Not only on the IPO process itself but in ensuring that our ongoing business was adequately resourced throughout that period. We could never have achieved what we did within the timescale we had set for ourselves without the Brodies presence in our office in India ably assisting our India in-country Corporate Counsel.” Bill Keil - Group Legal Manager Cairn Energy

NHS Forth Valley Patients in Clackmannanshire are benefiting from a new £20m (v28.7m*) community hospital and health centre. The services are part of NHS Forth Valley’s commitment to faster, better healthcare for everyone. The hospital and health centre provide integrated care to meet patient needs, including OAP services, community health and GP facilities. Brodies advised on the 30-year public private partnership project on behalf of client NHS Forth Valley. We advised on the procurement process for this major project, which will help NHS Forth Valley achieve its aim of providing high quality care closer to people’s homes. The firm also advised on the development of a new payment mechanism for the project, which is intended to become the standard for all future NHS projects in Scotland.

University of Pittsburgh Medical Centre The University of Pittsburgh Medical Centre (UPMC) has been listed as one of America’s best hospitals for the past eight years by US News and World Report. UPMC, a not-for-profit $7bn (£3.4bn / v5bn*) organisation with 45,000 employees, exports its medical and management expertise across the world. It has recently set up partnerships with European institutions and is now driving forward opportunities with NHS Trusts in the UK to put in place pioneering projects. Brodies is advising UPMC to help with its push into the UK health market and on partnering arrangements with NHS Trusts. UPMC aims to collaborate with leading UK hospitals through the sharing of medical expertise and systems technologies. Its international projects include two cancer centres in Ireland, a transplant hospital in Italy and emergency management services in Qatar.

CombineMed CombineMed, a sophisticated form of electronic purchasing to buy supplies, drugs and services, is a joint venture between the University of Pittsburgh Medical Centre and CombineNet software company. It aims to slice millions of dollars off healthcare procurement bills. Brodies has been chosen to advise CombineMed on its first UK procurement sourcing event. The firm will also give guidance on setting up initial contracts with procuring authorities. CombineMed uses a tool called Express Commerce, through which suppliers employ a secure website to submit sealed proposals in much more detail than existing e-commerce methods. The technology can generate savings of between 8% and 14% on a wide range of supplies used by hospitals.

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Brodies advises NHS clients on procuring health services, new facilities and information regulation, and overseas healthcare clients on transacting with the NHS. We also provide litigation services and regulatory advice.

Nairn & Ardersier GP Practices A major new medical centre is being built at Nairn as part of a larger development including a new Cottage Hospital that will house the growing GP practices of Nairn and Ardersier. The purpose-built centre not only allows for much-needed expansion of the busy practices, but also focuses on the importance of patients’ health gain alongside ill-health treatment. The entire extended Primary Health Care Team will all be located under one roof, providing the full range of services to the community when the medical centre opens in 2008. Brodies has advised on the lease agreement for the GP practices within the new centre. GP practices require specialist property legal guidance, an area where we have amassed significant experience, including advising similar practices on moves to new premises at Edzell and Greenock.

NHS Tayside The Scottish Regional Treatment Centre at Stracathro Hospital in Angus is a pioneering public private partnership between NHS Tayside, Amicus Healthcare (Scotland) Limited (a subsidiary of Netcare Scotland) and General Healthcare Mixer Partnership LLP. It enables North East Scotland patients to benefit from faster access to treatment and the ability to choose the date that suits them best for planned surgical procedures. This move, the first of its kind in Scotland, will mean reduced waiting times and longer opening hours for Grampian, Tayside and Fife NHS patients. Brodies acted for NHS Tayside in negotiating the circa ÂŁ15m (v21.5m*) contract. The creation of this innovative initiative involved our legal team from the start of negotiations to the successful signing of the contract in November 2006. The results from the new centre mean direct benefits for patients, however rural or remote, through a groundbreaking project that is transforming access to treatment in North East Scotland.

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10 >Retail & Leisure Grosvenor Shopping Centre Fund The Grosvenor Shopping Centre Fund targets dominant town centre assets. It invests wisely and markets energetically to increase the number of, and amount of time, shoppers spend in the Fund’s popular retail centres across the UK. Brodies advised the Fund on the sale of the Forge Shopping Centre, next to Parkhead Football Stadium in Glasgow. The centre has 70 shops, anchored by Asda, Dunnes Stores and H&M. The shopping centre was sold to Irish investors for circa £140m (v201m*), an equivalent yield of 6%. The Fund holds assets valued at circa £750m (v1.1bn*). O2 (UK) Limited One of Brodies’ busiest property clients over the course of the last 12 months has been the mobile phone operator, O2. Our top-rated retail team assisted O2 with the Scottish property aspects of the acquisition of the 240-store business of The Link. After completing the purchase, O2 was then involved in a series of portfolio disposals of its excess stores. Brodies assisted in four such portfolio package disposals, involving 30 excess Scottish properties, all achieved in line with tight deadlines.

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The past year also witnessed O2 make further major investment in its network capability in Scotland with the opening of its largest UK call centre operation at Sky Park, Glasgow. O2’s acquisition of the call centre, which employs over 1,700 people, has been billed as the biggest office letting in the West of Scotland in the last 5 years. Enterprise Rent-A-Car Enterprise Rent-A-Car celebrates its 50th anniversary in 2007. It is one of the largest car rental companies in the world, with more than 7,000 offices across Europe and North America. Enterprise recognises that it owes much of its success to the talent, dedication and involvement of its people, and, as a result, has a commitment to strong employee relations, winning awards as one of ‘Britain’s Top Employers’ and as a place ‘Where Women Want to Work’. In addition to providing corporate advice on selected acquisitions, Brodies advises the company on employment law. This involves working alongside Enterprise’s Scottish management on strategy and specific human resources issues. The close relationship keeps the company updated on fast-changing employment legislation and how it affects Enterprise employees.

Arnold Clark The Arnold Clark Group takeover of Harry Fairbairn Limited, Scotland’s leading BMW and Mini dealer group, confirmed Arnold Clark’s pole position as Europe’s largest independent car dealership. Brodies advised Arnold Clark on this strategically important deal, which involved the purchase of the entire issued share capital of the Glasgow and Ayrshire-based Harry Fairbairn dealership.

There remains no prime Scottish shopping centre, high street or out-of-town retail park in which Brodies has not been involved.

Following the success of this transaction Arnold Clark has been named as Scotland’s largest private company and the 11th biggest in Britain, according to research published by KPMG. The Group continues to expand, opening Europe’s largest car showroom within the prestigious Glasgow Harbour development and a £10m (v14m*), 10-acre (4-hectare) dealership in Staffordshire this year, acquiring Fiat and Alfa Romeo dealerships in Glasgow and Paisley and increasing turnover year on year. Brodies advised Arnold Clark on the business transfer agreements and property aspects of the acquisition of the two Fiat and Alfa Romeo dealerships.

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11 >Education Queen Margaret University Scotland’s first purpose-built university campus of the 21st century was completed in the year under review. Queen Margaret University centralised its three existing campuses at the £105m (v150m*) landmark development on the outskirts of Edinburgh. Queen Margaret University was granted full university title in 2007. Brodies won a competitive tender to advise the higher education institution on the drafting and negotiating of the Privy Council Order that resulted in this status. The University’s new ‘academic village’ has strong green credentials, including energy efficient heating and water. Brodies drafted an energy supply agreement for a biomass plant, using woodchip from Scotland’s woodland resources to power the pioneering sustainable establishment. Brodies partners were delighted to attend the installation of QMU’s first Chancellor, Sir Tom Farmer, at a ceremony in July to mark its new full university status.

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Jewel and Esk Valley College Jewel and Esk Valley College’s £53m (v76m*) redevelopment is set to revolutionise training in South East Scotland by creating new opportunities for jobseekers and those already in work. The Edinburgh campus and the new Midlothian campus will provide 21st century teaching facilities replacing a variety of buildings from the 1950s, 60s and 70s. The driving aim of the College is to contribute to social inclusion and local economic growth. Staff integrate business principles with teaching to increase the employability of the College’s 10,000 students and develop its skills base whist helping them achieve the best possible results.

“The Brodies legal team is an integral part of the project team working with the architects, consultants and contractors to ensure everyone knows what is expected and perform in what is a very ambitious and audacious timeline.”

“Brodies’ cross-practice team has supported us for many years on a range of projects. We value its knowledge, advice and understanding of us and our sector.” Ben McLeish - Director of Finance Edinburgh’s Telford College

Howard McKenzie Principal and Chief Executive Jewel & Esk Valley College

As legal adviser to Jewel and Esk Valley College, Brodies is working alongside the College on the legal aspects connected with the redevelopment. Property acquisition and disposition, construction and EU procurement advice are central to Brodies’ involvement.

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12 >Technology Edinburgh’s Telford College Edinburgh’s Telford College opened its technology-rich £70m (v100m*) campus last year, relocating 21,000 students to an attractive waterside site and unifying three campuses with a single, state-ofthe-art centre. Brodies, just reappointed as legal adviser to the College, has, over the past year, provided property, employment, construction, licensing, regulatory and governance support. Along with Deloitte and Colin Tyer QC, Brodies assisted the College on the recovery of VAT which led to a “groundbreaking” decision on VAT payments by the House of Lords that could mean substantial savings on construction costs for further education colleges. The successful result meant that the College has saved substantial amounts that can now be invested in improving the learning experience. Edinburgh’s Telford College is the largest purpose-built college construction project in the UK for more than 30 years. Since moving to the new campus the College has been able to drive forward its world-class ambitions and enhance its reputation for accessibility and flexibility. It now offers over 1,000 courses, attracting record numbers of students.

Newbattle Abbey College Scotland’s only adult residential college celebrates its 70th anniversary in 2007. Originally a 12th century Cistercian abbey, establishing itself as a College in 1937, it attracts students from around the world to its peaceful, unique surroundings, set in a 50-hectare (124-acre) estate. In a groundbreaking partnership between the Forestry Commission Scotland and Newbattle, the College’s extensive woodlands are now being managed to open them up to the local community, visitors and students. This marks the beginning of a 15-year campus redevelopment strategy centred on the development of the College and its entire estate. Brodies has advised the College on a number of matters over recent years, including the provision of corporate and employment legal guidance.

“Brodies has provided an extremely professional and effective service in support of the College’s varied heritage and educational portfolio.”

Anniesland College Anniesland College in the West End of Glasgow has won praise from the HM Inspectorate of Education for its teaching, lively ethos and sense of community. The College was described as “sector-leading” and “innovative” by the inspectors. The latest official inspectors’ report also noted the College’s significant contribution to economic and workforce development. It stated that the College worked effectively with other agencies to promote community development, skills acquisition and employability of its 10,000 students. The College’s 1960s buildings are to be replaced with a £50m (v72m*) campus on the same site. Work began in 2007 and it is hoped the first phase the teaching block - will be ready at the beginning of 2009. Brodies is sole employment law adviser to the College, which has over 300 members of staff. Our team works alongside Anniesland College on all aspects of employment legislation, and recently acted on its behalf at a complex Employment Tribunal.

Omega Diagnostics Omega Diagnostics’ reverse takeover of Quintessentially English PLC in 2006 ensured a high profile debut for the Clackmannanshire headquartered biomedical company at its AIM listing. A second reverse takeover in August 2007 of Genesis Diagnostics Ltd and Cambridge Nutritional Sciences Ltd for £6.7m (v9.6m*) set the seal on a fast-paced, successful year for Omega and also took it into the important food intolerance diagnostics market. Brodies’ highly experienced corporate team worked with Omega to successfully close both key transactions. The acquisitions have diversified the worldwide market for Omega products, and strengthened the position of the quickly growing company. Omega Diagnostics exports 95% of its products to more than 100 countries. It is developing a new herpes diagnostic kit for Herpes Simplex Virus 2 (HSV-2), a chronic disease that affects over 60 million adults in the US alone.

Response Genetics Los Angeles-based Response Genetics chose Edinburgh as its European base. The ambitious biomedical company is pioneering the development of ‘personalised medicine’, and is planning a global presence at key locations across the world. The pivotal business expansion into Europe required first-class property law advice. Response Genetics chose Brodies to advise on its acquisition of laboratory space in Edinburgh in light of our acknowledged expertise and accessible approach. The move into Edinburgh and the European market doubled the analysis capacity of the Nasdaq-listed company. Response Genetics has since been able to drive forward its global plan through a collaboration agreement with Hitachi Chemical Ltd, Japan, focusing on three key markets in Southeast Asia, Australia and New Zealand.

Ann Southwood - Principal Newbattle Abbey College

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“Brodies was the obvious partner for us on this transaction. Its corporate finance lawyers’ knowledge of the Omega business and market ensured a successful outcome.” Andrew Shepherd - Chief Executive Omega Diagnostics

Total Safety Total Safety is the world’s leading global provider of integrated safety strategies and the products necessary to support them, offering solutions such as turnaround safety support, hydrogen sulphide safety services, rescue services, safety training, fire services and engineered system design. In continuing its strategy to ensure the safe wellbeing of workers worldwide, Total Safety acquired Breathing Equipment Hire Limited, based in Nottingley, England, opening up the European market to the Texas-based firm. The combination of these two well respected companies and their management and employee teams will continue to allow Total Safety to meet the expectations of its global customers and further provide enhanced safety service solutions. Total Safety chose Brodies’ highly experienced corporate finance team as its UK legal adviser for this strategically important deal, who managed the complexities of the transaction smoothly. The result is a successful acquisition that unlocks the key European downstream safety services market to Total Safety, which now has over 50 locations worldwide.

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BAE Systems Regional Aircraft Regional Aircraft, part of BAE Systems, is a leading provider of aircraft and support services to regional airlines. With over 800 aircrafts and more than 160 customers in 80 countries, its aircrafts continue to be the key drivers in the growth and development of regional airlines worldwide. The company is currently advancing plans to increase services to customers online. The planned launch of Regional Aircraft’s internet-based technical publications delivery system, iSAPPHIRE, will allow customers to view, download and print aircraft manuals and other technical publications via its website. Brodies’ technology team has been supporting Regional Aircraft with legal advice in connection with the further development and implementation of its website and, in particular, iSAPPHIRE, over the past year. Through this project Regional Aircraft aims to anticipate customer requirements as to online availability of key technical information and to continue to strive for excellence in the effectiveness and efficiency of its service delivery.

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13 >Property

“Brodies is able to provide us with a comprehensive set of legal skills which enable us to pull together the many strands of our increasingly complex developments in an efficient and effective manner. This enables us to remain focused on the key priorities for delivery of our projects.” Kevin Robertson - Managing Director Macdonald Estates plc

Propinvest Scotland’s largest-ever property deal, the development of East Kilbride, is set to transform Lanarkshire’s largest town, reinvigorating the local economy and building a better quality of life for residents and businesses. Brodies advised the new owner, Propinvest, one of the UK’s largest property investment firms. A team of 15 specialist lawyers worked on the transaction for months, seeing it through to successful completion. Scottish Retail Property Limited Partnership (SRPLP), a joint venture between Land Securities and British Land, sold the site. South Lanarkshire Council has announced proposals that will introduce a landmark arts and culture complex and build on East Kilbride’s thriving retail centre, which includes Scotland’s largest shopping mall, to make ‘the new town a boom town’.

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LXB LXB is a specialist retail property investor and developer. Established in 2003, the company has built an impressive UK-wide track record. Its strategy of finding solutions that unlock the maximum potential of sites has created over £2bn (v2.9bn*) of retail deals during that time. Brodies has advised LXB on many major transactions, including the recent £48.5m (v69.6m*) sale of an LXB supermarket portfolio. Our property team at Brodies is also helping to negotiate the lease of its new Golden Square, London HQ. LXB’s strategic retail expertise is highly valued by its backers, House of Fraser owner Baugur, HBOS and West Coast Capital. The company focuses on adding value to developments for its investors, with evident success. The main LXB fund now has an investment portfolio of £150m (v215m*) and the group is widening its range to include mixed use and residential schemes.

“A proper partnership between client and lawyer can only exist where the lawyer understands the client, its business and the commercial issues affecting that business. That is the added value that Brodies brings to us.” Lisa Hartley - Director Propinvest

“Brodies is a key member of the LXB core legal team. We always get quick, tailored and pragmatic advice.” Richard Margee - Principal LXB Partners LLP

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Moorfield Group Moorfield Group, investment and asset manager for the £1bn (v1.4bn*) Moorfield Real Estate Fund (Moorfield) has strengthened its thriving assets with the £110m (v158m*) purchase of WA Shearings’ 40 hotels.

Kier Homes Kier Homes is one of the fastest growing new house builders in Scotland. The company’s momentum is increasing with the acquisition of a number of new development sites throughout Scotland’s central belt.

Brodies was chosen against national competition to advise on the WA Shearings sale and leaseback transaction for Moorfield. The size and complexity of the deal, which included separate contracts for 12 Scottish hotels to match UK commercial terms, involved a multidisciplinary legal team which completed the purchase speedily and successfully.

Kier’s completed residential schemes in the West of Scotland, West Lothian and Midlothian have proved popular with house owners, and are selling well throughout the country.

As a result Moorfield now plans further major investment in the WA Shearings’ hotels and intends to add to its fast-growing portfolio of UK-wide hotel chains. Moorfield has enjoyed an excellent year completing a series of substantial deals across all property sectors and is now in the process of completing the fund raising for its second and larger real estate private equity fund, MREF II.

Brodies advises Kier Homes on land acquisition and plot sales across Scotland, its growing presence in Glasgow helped by the work of our strengthened property team in the city. The firm provides consistently high quality legal expertise and has the ability to work closely alongside a client, however quickly its business grows. This approach has helped to bring speedy and valuable results for Kier Homes during its successful expansion period.

Macdonald Estates plc The regeneration of brownfield sites and dated town centres has been a cornerstone in the work of Macdonald Estates plc, one of Scotland’s biggest commercial property success stories. Founded by Dan Macdonald in 1998, the company specialises in commercial regeneration and has been at the forefront of some of Scotland’s most ambitious town centre regeneration projects in Stenhousemuir, Falkirk, Coatbridge, East Kilbride and Inverness. Recent financial results show the company posting a profit of £4.5m (v6.5m*) for 2006 - up 26% on 2005 and up 40% from 2004 - after completing projects worth £250m (v359m*). This includes the Stockbridge Retail Park in Linlithgow and the final phase of Childers Road Retail Park in Limerick. Brodies has been a close adviser to the company in its dealings, including all work for its Stenhousemuir redevelopment and is currently advising the company on its successful bid as preferred developer for the East Development Site at Glasgow’s SECC, to comprise offices, a hotel and multi-storey car parking.

Novar Estate A gem in the beautiful Novar Estate, Ardtalla is a stunning conversion of an original 18th century stable square for letting, weddings and other functions just one example of the interests of this modern and thriving family business. Located in picturesque Ross-shire, Novar Estate, like other modern estate businesses, has moved on and today is an excellent example of a diversified commercial estate. As leading adviser to this market, Brodies has been there every step of the way. The firm has advised and continues to advise Novar Estate in all matters affecting the family businesses including property lettings, renewable energy projects, country sports, agriculture and forestry. Novar Estate is host to one of the first windfarms in Scotland which was recently granted planning consent for an extension and has also constructed its own hydro electric scheme supplying the national grid. Salmon fishing on the River Alness, as well as an excellent high and low ground shoot make up the sporting interests on the Estate.

Ashtenne The Ashtenne Industrial Fund was established in 2001 to invest in industrial properties throughout the UK. The Fund is a joint venture between Morley & Ashtenne. Ashtenne is now owned by Warner Estate Holdings plc and is one of the leading industrial asset managers in the UK. Brodies was appointed in August 2006 as adviser to the Fund in relation to managing a significant part of its Scottish portfolio of approximately 350 units. In addition, Brodies acted for the Fund in the acquisition of the £23m (v33m*) Park Lane industrial portfolio which included 7 industrial estates in Scotland and 2 in England and Wales. Brodies’ property litigation team also advises the Fund in relation to debt recovery and dispute resolution.

“We value Brodies’ ability to react quickly and effectively in time-critical deals, no matter what their size and nature.” Marc Gilbard - Chief Executive Moorfield Group

“Brodies is a natural choice for us. It has the expertise to handle all of our needs, covering both family and business interests. Most importantly it works as an integral part of our business.” Ronald Munro Ferguson - Owner Novar Estate

Brodies has been involved in bringing a long running action to a successful conclusion in the House of Lords, on behalf of an aggrieved minority shareholder. The s459 Companies Act Petition was raised against property development company Jaymarke Estates Limited, with the firm acting in the Inner House appeal and in the House of Lords on instructions from Aberdeen solicitors, David S Macdonald & Co. Brodies acts in a variety of other types of corporate litigation including derivative actions, shareholder disputes, warranty claims and various corporate insolvency cases.

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14 >Private Client Family Brodies’ family law team, with its broad spectrum of work, continues to enjoy an outstanding reputation in both Scotland and the UK as a whole. A large proportion of the team’s work involves cases that are high profile, high net worth or have international elements. As ever, we remain committed to delivering a top quality service. The team is complemented by a close working relationship with lawyers across all other areas of the firm, including our commercial and tax specialists. The constant evolution of the law, together with the increasing complexity of our personal finances, reinforces the need to provide clients with specialist advice on many different aspects of law. The benefit of this advice can often be measured in thousands, if not hundreds of thousands of pounds. Our ability to blend our expertise in these areas has paid dividends to large numbers of clients and Brodies is increasingly sought after by the foreign super-rich with Scottish connections to advise with regard to pre and post nuptial agreements.

Tax We have one of the most highly regarded and progressive private client practices in Scotland, with an outstanding team of lawyers, many of whom are recognised as leaders in their own fields with vast knowledge and experience in estate planning, wills, trusts, power of attorney, tax and accounting, charities and executries, as well as broader tax planning. We are recognised throughout Scotland for providing expert advice to a large number of smaller practices in relation to complex trust and taxation matters with advice extending to expert opinions on the full range of personal tax, trust and executry matters. In consultation with our clients we have reviewed how private client work is done and will be done in the future. We have refreshed the traditional view of the Scottish lawyer as “a man of business” to reflect the needs of clients in the 21st Century. It is no longer sufficient to simply provide a legal service in isolation. As a team we have risen to the challenges of deregulation and have embraced the opportunity - a strength which is recognised by the profession.

Wills Three of our partners are co-authors of “Drafting Wills in Scotland”, recognised as the leading text in the field. The latest edition of the book will be published in 2008. Our specialists in will writing are recognised for their ability to provide bespoke advice to an ever increasing stable of clients from entrepreneurs to busy professionals and land owners.

“In life there are several very important decisions that you must make. One, for me, was choosing who would look after the two most important things in my life - my family and my assets. It took me a long time to source the best. In my case that was Brodies.” Scott Sharkey - CEO Sharkey

The ability to provide a very high quality of service and delivery has been recognised this year with Brodies being appointed to provide will drafting and other private client services to the private banking arms of two of the UK’s major high street banks. The department has had a superb year through new clients and business growth in this area, with will instructions increasing by 300%.

In 2007 the private client team was awarded “Private Client Firm of the Year” at the Firm Magazine Law Awards of Scotland and was also short-listed for “UK & Ireland Regional Legal Team of the Year” at The STEP Private Client Awards 2007. Added to the achievement of partner, Alan Barr, as “UK Tax Lecturer of the Year” at the LexisNexis Butterworths Taxation Awards 2006, this is testimony to the continued success and world-class reputation of the department.

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15 >Brodies in the community scottishathletics With the London 2012 Olympics fast approaching and Glasgow’s bid to host the 2014 Commonwealth Games looking increasingly positive, this is certainly an exciting time for young British athletes. In support of this, Brodies has teamed up with scottishathletics on a sponsorship programme to promote the sport in Scotland. This includes title sponsorship of the Brodies Scottish National Championships - the hugely successful annual event held at Scotstoun, Glasgow, which saw some of Scotland’s top track and field athletes in action alongside many of the young stars of the future, whose progress we will follow with great interest. Investing in sporting infrastructure, training and promotion is key to improving Scotland’s health as a nation. Brodies’ investment in athletics recognises the crucial role that sport plays in maintaining a healthy and active workforce. scottishathletics (affiliated to UK Athletics) is the governing body for the sport in Scotland. It was established to foster, develop and control the sport of athletics in Scotland, take responsibility for all athletic teams representing the country, promote annual Championships and other competitions, establish and enforce rules for competition, and advance and safeguard the interests of athletics in Scotland.

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Scottish Schools Swimming Association The Scottish Schools Swimming Association aims to give every child in Scotland the chance to learn how to swim and provides a pivotal role in liaising with government agencies to ensure targets for the sport and the development of effective facilities. The SSSA also encourages the competitiveness of swimming and works to promote this in a variety of ways. Brodies is delighted to assist the work of the SSSA, as title sponsor of a series of championships across Scotland, involving over 500 school pupils over the year. The world class reputation of Scottish swimming has significant appeal as many of today’s stars all competed in similar school events over the years. Our support follows a commitment to nurturing and developing this thriving talent in Scotland.

The University of Edinburgh For the past three centuries, the University of Edinburgh has enjoyed a colourful history as one of the world’s finest institutions for legal scholarship and teaching. 2007 sees the University celebrate the tercentenary of the creation of its first Chair in Law. The University’s legal alumni have contributed remarkable service both at home and worldwide in legal practice, in high judicial office, commerce and public service, and, indeed, in literature and the arts and humanities. Now approaching its fourth century, the school is larger and even more diverse than ever before. Brodies is delighted to be involved with the Tercentenary celebrations, supporting a House of Lords Reception hosted by Lord Hope of Craighead, for London-based Edinburgh University law graduates. This is a fitting tribute to the University by key figures operating at the heart of the UK legal establishment.

Edinburgh’s Telford College This year Brodies continued its sponsorship of Edinburgh’s Telford College Centre for Professional Dance Training annual end of year production, ‘Cross Currents’, at the Edinburgh Festival Theatre.

The Sick Kids Friends Foundation The Sick Kids Friends Foundation was set up in 1992 to support the work of the Royal Hospital for Sick Children in Edinburgh. The Hospital receives over 100,000 children through its doors each year, from all over the East of Scotland.

Students from the NC, HND and BA (Hons) Dance courses at the College incorporate film, lighting and innovative movement to showcase an eclectic mix of dance styles ranging from contemporary dance, to high energy jazz, street dance and entertaining tap, with choreography by lecturing staff and special guests.

Brodies is supporting the SKFF ‘Carols for Christmas’ initiative which brings together a host of celebrities with the NYCoS Edinburgh Choir and the Dalkeith and Monktonhall Brass Band for a traditional evening of Carols and Seasonal Readings each year.

As the largest provider of dance training in Scotland, Edinburgh’s Telford College is centred on developing young talent. The College’s specially designed state-ofthe-art dance studios complement the highly regarded teaching and training on offer.

The funds raised by such events go a long way to enabling the provision of a wide variety of extra comforts, which make time in hospital better for children, the provision of extra child and family-friendly facilities, the purchase of extra medical equipment over and above NHS provision, the provision of extra support for sick children who are cared for in the community and funding for extra training and research.

Maggie’s Centres Maggie’s Cancer Caring Centres help people with cancer to be as healthy in mind and body as possible and enable them to make their own contribution to their medical treatment and recovery. For the past two years Brodies’ staff have raised significant sums for the Centres by participating in the Maggie’s Moster Bike and Hike event, making the 73-mile journey from Fort William to Inverness, by bike and by foot, along the route of the Great Glen Way. This year the firm’s charities committee supplemented this by paying entrant fees and contributing towards travel and accommodation costs for participants. Through its support of events such as this Brodies is delighted to be part of the pioneering development of Maggie’s Centres across the UK.

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16 >Accounts

Profit and loss account for the year ended 30 April 2007

2007

2006

£000

£000

30,007

20,939

(18,407)

(12,531)

11,600

8,408

Net interest receivable

155

117

Other finance costs associated with FRS 17

(38)

(48)

Profit for the financial year before members’ remuneration and profit shares

11,717

8,477

Members’ remuneration charged as an expense

(10,751)

(7,748)

Turnover Operating expenses Operating profit

We remain as committed to targeted growth as ever and now have a momentum which is hard to match in any Scottish law firm.

Profit for the financial year available for discretionary division among members

966

729

Profit for the financial year available for discretionary division among members

966

729

Actuarial gain relating to pension scheme

209

(28)

Statement of total recognised gains and losses

Total recognised gains and losses for the year

1,175

701

All results relate to continuing activities

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Balance sheet as at 30 April 2007

Cash flow statement for the year ended 30 April 2007

2007

2006

2007

2006

£000

£000

£000

£000

8,530

8,107

869

628

155

117

Current assets Debtors Cash at bank and in hand

16,792 852

11,470 1,700

(684)

(262)

(8,715)

(7,315)

Creditors: amounts falling due within one year

17,644 (4,247)

13,170 (2,754)

Net current assets

13,397

10,416

Total assets less current liabilities

14,266

11,044

Fixed assets Tangible assets

Net cash inflow from operating activities Returns on investments and servicing of finance Capital expenditure and financial investment Transactions with members and former members Net cash flow before financing

(714)

647

Financing

(134)

(93)

Change in cash during the year

(848)

554

Change in cash in the year

(848)

554

Change in net funds resulting from cash flows

(848)

554

Reconciliation of net cash flow to movements in net funds Creditors: amounts falling due after more than one year Provisions for liabilities and charges

(5) (794)

(81) (404)

Net assets excluding pension liability Net pension liability

13,467 (955)

10,559 (1,259)

NET ASSETS ATTRIBUTABLE TO MEMBERS

12,512

9,300

Represented by: Loans and other debts due to members Members’ capital classified as a liability under FRS 25 Other amounts

Equity Members’ other interests - other reserves classified as equity under FRS 25 TOTAL MEMBERS’ INTERESTS

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New finance leases incepted in the year Capital element of finance lease payments Change in net funds in the year

2,515 10,302

2,316 7,735

12,817

10,051

(305) 12,512

Net funds at 1 May 2006 Net funds at 30 April 2007

-

(45)

134

138

(714)

647

1,499

852

785

1,499

(751) 9,300

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17 >Contacts > Technology Grant Campbell - Partner 0131 656 0115 grant.campbell@brodies.co.uk

> Urban Regeneration Alasdair Fleming - Partner 0141 245 6726 alasdair.fleming@brodies.co.uk

> Property Denis Garrity - Partner 0131 656 0155 denis.garrity@brodies.co.uk

> Transport Julian Voge - Partner 0131 656 0248 julian.voge@brodies.co.uk

> Private Client Hugh Stevens - Partner 0131 656 0240 hugh.stevens@brodies.co.uk

> Public Sector Christine O’Neill - Partner 0131 656 0286 christine.oneill@brodies.co.uk

> Corporate / Corporate Finance Iain Young - Partner 0131 656 0154 iain.young@brodies.co.uk

> Energy & Utilities Charles Smith - Partner 0131 656 0236 charles.smith@brodies.co.uk

> Employment Joan Cradden - Partner 0131 656 0130 joan.cradden@brodies.co.uk

> Health Keith Patterson - Partner 0131 656 0059 keith.patterson@brodies.co.uk

> Commercial Litigation Robin Macpherson - Partner 0131 656 0131 robin.macpherson@brodies.co.uk

> Retail Colin Morrison - Partner 0131 656 0193 colin.morrison@brodies.co.uk

> Planning Neil Collar - Partner 0131 656 0125 neil.collar@brodies.co.uk

> Education Brenda Scott - Partner 0131 656 0226 brenda.scott@brodies.co.uk

> Tax Alan Barr - Partner 0131 656 0103 alan.barr@brodies.co.uk Design and production: gmmedia.co.uk

> Banking & Financial Services Bruce Stephen - Partner 0131 656 0260 bruce.stephen@brodies.co.uk

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Brodies LLP


15 Atholl Crescent Edinburgh EH3 8HA T 0131 228 3777 F 0131 228 3878

2 Blythswood Square Glasgow G2 4AD T 0141 248 4672 F 0141 221 9270

“Brodies” is a registered trade mark www.brodies.co.uk

/Small%20File%20Final%20Annual%20Review%202007  

http://www.brodies.com/_content/publications/pdf/Small%20File%20Final%20Annual%20Review%202007.pdf

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