The Scottish Family Business Top 100 2019

Page 1

The 2019 Scottish Family Business

Top 100

Sponsored by

The Scottish Family Business Top 100 | 1


“Family businesses are the engine room of the Scottish economy. We need to support and promote this vital sector� Mark Christie Carbon Financial Partners

Thanks We would like to extend our thanks and appreciation to our sponsors of this report, Carbon Financial, and partners in terms of bringing the data together, Professor Claire Seaman of Queen Margaret University, Paul Bready of Craig Corporate Limited. 2 | The Scottish Family Business Top 100


Foreword Carbon is delighted to continue our support of this extensive piece of research, which again highlights the valuable contribution the family business sector is making to the Scottish economy. The top 100 family businesses in Scotland employ 112,688 people. This is a sector which needs to be both recognised for the excellent work done to date and supported so it can make an even greater contribution in the future.

Carbon’s involvement with family businesses typically begins at a time of change. This might be when value is about to be realised on exit or when it is time for value to pass to the next generation. With our family business clients our aim is to understand what each generation is looking to achieve and then to put in place a suitable plan to give them the best chance of achieving their individual goals. We can then apply our planning-led approach to the different generations, before turning back to the business to determine how all the individual objectives can be met.

Mark Christie Corporate Director www.carbonfinancial.co.uk Mark.christie@carbonfinancial.co.uk

The Scottish Family Business Top 100 | 3


Introduction Family firms are the driving force of economies

First and foremost, all of the businesses listed

the world over and Scotland is clearly no

in the Top 100 generate more than £25 million

exception. Across Scotland family firms are the

in turnover, with the top revenue generator

engine room of local and regional economies

being Arnold Clark Automobiles reporting £3.9

and continue to create significant income, wealth

billion which clearly quantifies the scale of the

and employment. The contribution of the Top

contribution of the sector. Collectively, the Top

100 family firms in Scotland goes a long way to

100 family firms in Scotland generate over £20

demonstrating how important these firms are to

billion annually, a significant portion of national

the national economy too.

GDP and within this highly successful group of

In our third report into the Top 100 family firms

businesses, over 112,000 people are employed.

in Scotland we can clearly see the growing

There is a also a diverse mix of businesses

contribution that is being made by the sector,

represented in the report with some that have

growing despite the prevailing economic and

been around for generations, others at a far

political uncertainties that are continuing to

earlier stage in their journey and a good mix of

cause concerns to businesses all over the

sectors represented too.

country. These firms are integral to the economy, and to Scotland, and it is vital that policy influencers and decision-makers understand their impact and support them too.

Family businesses have a story to tell and all of the firms listed in the Top 100 have a sense of real purpose, possibly driven by the aspirations of the founder at the start of the journey. Each

Family firms are significant and the quantifiable

and every family firm in Scotland has their

evidence generated by this report continues

own narrative, a point of difference that can

to shed light on the importance of the sector,

be a powerful tool in the commercial world

ensuring that appropriate recognition and

and this together with their sense of purpose

resources are directed to businesses that take

and underlying values clearly helps them to

a long term view, are good employers, in many

get results. Family firms across Scotland are a

cases stewards for future generations and also

fantastic resource and deserve to be proud of all

major contributors to community life the length

that they continue to achieve.

and breadth of Scotland, the lifeblood of many rural communities and an essential part of these regional economies.

The numbers say it all – Major employers, significance revenue generators and real assets to Scotland. Family firms across Scotland are a real force for good and deserve to be celebrated for all that they do and for their commitment to Scotland and the communities in which they operate so successfully.

4 | The Scottish Family Business Top 100


Key info

112,688 Top 100 family firms employ 112,688 people

16.3%

Top 100 family firms year on year turnover growth is 16.3%

Top 100 family firms create

£20 Billion turnover annually

Largest family business employer is City Facilities Management

Top 100 family firms in Scotland employ 948 more people this year Top 100 family firms generate

£1.3 Billion PBT Largest PBT reported by William Grant & Sons at £304 million

£3.9 Billion Arnold Clark Automobiles Limited has largest turnover of £3.9 billion

The Scottish Family Business Top 100 | 5


Executive Summary Family firms make a significant contribution to

Geographically, the impact of the Top 100 family

the Scottish economy and this research proves

firms is also important as they are having an

that family firms are significant employers,

impact on regional and rural economies across

revenue generators and contributors across

Scotland. Whilst, as we would expect, there are

Scotland.

significant clusters of family firms around the

Over 112,000 people are employed in the leading family firms in Scotland – a significant number of people going to work each and every day in businesses that are owned and/or run by families in business with many of these having been in the family for generations too. The impact goes further as many employees come from local families where generations of their

major cities, it is great to see the diversity of geographical spread. 42% of all those employed in the Top 100 are employed in Lanarkshire, with Glasgow being the main hub and employing significantly more people than Edinburgh in family firms, but it is great to see over 11,000 people employed in Dumfriesshire, 14,000 in Stirlingshire and 5,000 in Aberdeenshire too.

family have worked in the same family firm

Our Top 100 is based on Profit Before Tax as

too. Family firms clearly make a difference to

we try to understand the contribution that

communities across Scotland.

family firms are making. The research concludes that the Top 100 family firms in Scotland are generating ÂŁ1.3 billion PBT which represents 7% of their combined turnover.

6 | The Scottish Family Business Top 100


Some sectors are more dominant than others in the Top 100. Motor Retail, Food & Drink and the Construction sectors lead the way contributing around half of all the business listed. Many of the Top 100 family firms have also stood the test of time, managing to beat the challenge of ‘clogs to clogs in three generations’ and continue to plan for the future with a long term strategic view on preparing the business for future generations to continue to own and manage. The findings of the 2019 Top 100 Scottish Family Firms clearly demonstrates a strong sector that is continuing to perform well despite the prevailing uncertainties in the market place, a significant sector in terms of employment and wealth creation and one that deserves to be recognised for the contribution it makes to the Scottish economy.

Paul Andrews Founder, FBU Scotland

The Top 10 1. William Grant & Sons Group 2. Arnold Clark Automobiles The Top 100 Scottish

3. The Edinburgh Woollen Mill

Family Firms Contribute

4. James Jones & Sons 5. Community Wind Power

£20.0 Billion Turnover

6. D.C. Thomson & Company 7. Ian Macleod Distillers

112,688 Employees

8. Robertson Group Holdings 9. City Facilities Management

£1.3 Billion PBT

10. Klondyke Fishing Company

The Scottish Family Business Top 100 | 7


Family Businesses In Scotland Scotland’s largest family firms continue to be the driving force of the Scottish economy. In our third report into the Top 100 Scottish family firms, based on the latest filed financial statements for the leading family firms in Scotland, the results remain impressive and continue to demonstrate the significant impact that these organisations have. The leading family firms in Scotland generate a combined total turnover of £20.0 billion compared to £17.2 billion in 2018, an increase for the Top 100 of 16.3% year on year and they collectively employ 112,688 people. Profits reported based on Profit Before Tax have risen slightly from £1.1 billion to £1.3 billion, again demonstrating that family firms across Scotland make a major contribution to the income, wealth and employment across the nation.

The Scottish Family Business Top 100 Top 100 2019

Turnover

Published Top 100 2018*

% Change

£20.0bn £17.2bn 16.3%

Profit Before Tax

£1.3bn

£1.1bn

18.1%

Employees

112,688

111,740

1.2%

* Please note that the 2018 figures shown are those reported in the Top 100 Scottish Family Firms 2018 published report. Some firms have entered the Top 100 during 2019 and as such the comparative reported figures in the following pages include the actual 2018 figures for the companies listed in the report this year which will differ cumulatively from the published figures for 2018.

8 | The Scottish Family Business Top 100


The Scottish Family Business Top 100 2019 RANK

COMPANY NAME

LOCATION OF REGISTERED OFFICE

2019 PROFIT/ (LOSS) BEFORE TAX £m*

Moved up the rankings since 2018

NR New entry into the 2019 top 100 Moved down the rankings since 2018 Same position as 2018 2018 PROFIT/ (LOSS) BEFORE TAX £m*

2019 TURNOVER £m*

2018 TURNOVER £m*

2019 NUMBER OF EMPLOYEES*

£304.0

£260.2

£1,188.1

£1,061.7

2,371

2,113

£106.6

£125.4

£3,931.4

£3,662.5

11,427

10,672

2018 NUMBER OF EMPLOYEES*

01

William Grant & Sons Holdings Limited

Keith

02

Arnold Clark Automobiles Limited

Glasgow

03

The Edinburgh Woollen Mill (Group) Limited

Langholm

£81.2

£83.8

£935.8

£592.1

10,912

10,195

04

James Jones & Sons Limited

Larbert

£33.2

£34.2

£163.9

£141.3

731

653

05

Community Wind Power (Holdings) Limited

Edinburgh

£32.4

£10.15

£60.6

£37.4

40

38

06

D.C. Thomson & Company Limited

Dundee

£30.7

£38.1

£274.2

£277.0

2,029

2,122

07

Ian Macleod Distillers Limited

Broxburn

£25.5

£15.3

£102.9

£79.2

180

153

08 NR

Robertson Group Holdings Limited

Stirling

£24.3

£19.0

£713.4

£608.8

2,640

2,095

09

City Facilities Management Holdings Limited

Glasgow

£19.6

£15.7

£821.7

£617.7

11,992

11,844

10

Klondyke Fishing Company Limited

Fraserburgh

£19.5

£19.4

£28.5

£28.9

9

9

Renfrew

£18.5

£2.2

£88.8

£46.1

440

360

Stirling

£18.1

£13.3

£195.6

£175.7

7,125

6,416

Glasgow

£16.7

£17.1

£186.6

£175.0

1,713

1,566

Hamilton

£16.5

£21.8

£761.0

£777.0

1,914

1,847

Glasgow

£14.8

£2.9

£39.8

£28.5

4

4

11

Dusty TLP Limited

12

Castle View Ventures Limited

13

GAP Holdings Limited

14 15

Park’s of Hamilton (Holdings) Limited

NR

Crystal RIG II Limited

16

Mactaggart & Mickel Group Limited

Glasgow

£14.2

£12.7

£82.3

£74.3

277

278

17

Lunar Fishing Company Limited

Peterhead

£14.1

£23.2

£86.2

£82.0

279

283

18

James Walker (Leith) Limited

Livingston

£14.0

£12.5

£166.8

£164.6

618

626

19

Speymalt Whisky Distributors Limited

Elgin

£12.9

£4.0

£39.5

£28.3

154

156

20

R.J. Mcleod (Contractors) Limited

Glasgow

£12.2

£21.8

£87.8

£134.9

398

437

Glasgow

£12.1

£11.1

£660.3

£642.7

3,864

3,953

21

Farmfoods Limited

22

Advance Construction Group Limited

Bellshill

£10.8

£3.1

£190.1

£205.2

1,403

1,383

23

The Insights Group Limited

Dundee

£10.0

£6.5

£53.5

£42.1

476

332

24

James Johnston & CO. of Elgin Limited

Elgin

£9.9

£6.2

£73.9

£68.8

956

989

Aberdeen

£9.9

£8.1

£153.1

£136.5

1,364

1,327

25

Dingbro Limited

The Scottish Family Business Top 100 | 9


The Scottish Family Business Top 100

2019 RANK

26 27 28 29 NR 30

COMPANY NAME

G1 Group (Holdings) PLC Eastern Holdings Limited Wemyss Development Company Ltd. The C C G (Holdings) Limited Jacobs & Turner Limited

LOCATION OF REGISTERED OFFICE

2019 PROFIT BEFORE TAX £m*

2018 PROFIT/ (LOSS) BEFORE TAX £m*

2019 TURNOVER £m*

2018 TURNOVER £m*

2019 NUMBER OF EMPLOYEES*

2018 NUMBER OF EMPLOYEES*

Glasgow

£9.9

£7.0

£123.6

£73.0

1,832

1,485

Broxburn

£9.6

£9.5

£606.3

£550.0

1,224

1,129

Edinburgh

£9.5

£2.6

£34.7

£28.7

2,116

2,117

Glasgow

£9.1

£6.4

£144.2

£135.8

626

615

Glasgow

£8.9

£4.1

£114.3

£99.4

1,702

1,634

31

Caledonian Heritable Limited

Edinburgh

£8.7

£10.2

£45.3

£46.1

893

844

32

Scottish Leather Group Limited

Bridge Of Weir

£8.4

£8.8

£145.6

£144.5

661

646

Stirling

£8.2

£6.3

£349.5

£319.9

1,040

991

Westhill

£8.0

Edinburgh

£7.8

£10.5

£68.9

£65.0

848

775

33 34 NR 35

J.W. Galloway Limited Stewart Milne Homes Central Scotland Limited Apex Hotels Limited

£66.8

36

James Donaldson & Sons Limited

Glenrothes

£7.7

£7.8

£153.6

£136.6

767

694

37 NR

W.A. Baxter & Sons (Holdings) Limited

Edinburgh

£7.3

-£0.6

£337.9

£296.7

1,586

1,463

38

Peter Vardy Holdings Limited

Glasgow

£7.3

£10.1

£450.2

£438.4

857

799

39

John Clark (Holdings) Limited

Aberdeen

£7.0

£8.2

£741.8

£702.8

1,262

1,206

40

The Malcolm Group Limited

Paisley

£6.8

£15.8

£213.0

£225.7

2,157

2,155

41 NR

Orion Engineering Services Limited

Inverness

£6.7

£1.0

£290.0

£293.4

262

326

Stirling

£6.6

£12.3

£260.0

£204.6

2,154

1,927

42

Forth Holdco Limited

43

Scott Group Investments Limited

Dunfermline

£6.2

£5.2

£148.7

£128.3

1,214

997

44

Gray & Adams Holdings Limited

Fraserburgh

£6.2

£9.7

£138.7

£148.3

715

731

Glasgow

£6.1

£2.7

£188.8

£184.5

268

261

45 NR

Ethigen Limited

46 NR

J & D Pierce (Contracts) Ltd.

Beith

£6.1

£9.8

£52.1

£50.7

47

Albert Bartlett Holdings Limited

Airdrie

£6.1

£7.0

£154.5

£170.9

777

783

48

E.G. Thomson (Holdings) Limited

Edinburgh

£5.9

£7.9

£59.3

£56.3

1,680

1,593

49

Balhousie Holdings Limited

Perth

£5.9

£3.7

£41.0

£36.8

64

1,334

Stirling

£5.8

£5.3

£236.9

£269.4

634

551

50

Ogilvie Group Limited

10 | The Scottish Family Business Top 100


2019 RANK

51 52 NR 53 54 55 56 57

COMPANY NAME

Meallmore Limited Markey Holdings Limited Glenrath Farms Ltd. Leiths (Scotland) Limited Hillhouse Estates Limited Peoples Limited Mccurrach UK Ltd.

LOCATION OF REGISTERED OFFICE

2019 PROFIT BEFORE TAX £m*

2018 PROFIT/ (LOSS) BEFORE TAX £m*

2019 TURNOVER £m*

2018 TURNOVER £m*

2019 NUMBER OF EMPLOYEES*

£3.7

£48.8

£43.1

1,578

2018 NUMBER OF EMPLOYEES*

Inverness

£5.6

Glasgow

£5.5

West Linton

£5.5

£6.4

£53.3

£52.6

220

216

Aberdeen

£5.5

£9.3

£71.6

£71.7

577

562

Troon

£5.4

£9.6

£44.6

£52.9

178

178

Falkirk

£5.3

£6.2

£274.4

£276.6

400

411

Glasgow

£5.2

£7.2

£53.6

£56.7

1,297

1,416

£40.5

1,520

319

58 NR

Allied Holdings (UK) 2014 Limited

Glasgow

£5.1

£7.0

£138.6

£131.5

643

593

59

Walkers Shortbread Limited

Aberlour

£5.1

£12.9

£143.1

£138.7

1,478

1,459

60

East Coast Viners (Holdings) Limited

Stonehaven

£4.9

£3.9

£49.1

£45.3

83

83

61

Balmoral Group Holdings Limited

Aberdeen

£4.7

£18.6

£86.6

£105.6

468

518

Aberlour

£4.7

£8.9

£46.8

£58.0

386

404

Glasgow

£4.7

£3.9

£61.1

£60.6

598

586

Cupar

£4.7

£2.5

£138.4

£128.3

1,169

1,158

Thornhill

£4.6

£5.9

£53.2

£54.5

911

951

62 63 64 65

Forsyths Limited John G. Russell (Transport) Limited Kettle Produce Limited Klondyke Group Limited

66

Scot JCB (Holdings) Limited

Glasgow

£4.4

£4.1

£135.4

£119.1

274

240

67

Tillicoultry Quarries Limited

Glenrothes

£4.3

£7.0

£53.7

£56.7

154

144

Edinburgh

£4.2

£2.9

£29.9

£36.7

173

234

Blairgowrie

£4.1

£3.4

£40.5

£38.4

381

374

Glasgow

£4.0

£4.0

£58.1

£52.6

577

547

68 69 70

Granfit Holdings Limited Walter Davidson & Sons Limited Thomas Tunnock Limited

71

Peffermill Holdings Limited

Edinburgh

£4.0

£2.6

£30.0

£27.2

193

239

72

Zonal Retail Data Systems Limited

Edinburgh

£3.7

£4.0

£53.3

£54.2

479

451

73

DI Maggio’s Group Limited

Glasgow

£3.7

£5.3

£36.8

£34.9

876

771

74

Mackays Stores Group Limited

Renfrew

£3.6

£3.3

£174.2

£165.6

1,556

1,523

Turriff

£3.6

£3.7

£119.1

£108.9

479

446

75

The Harbro Group Ltd.

The Scottish Family Business Top 100 | 11


The Scottish Family Business Top 100

2019 RANK

76 77

COMPANY NAME

LOW Holdings (Scotland) Limited Slater Menswear

LOCATION OF REGISTERED OFFICE

2019 PROFIT BEFORE TAX £m*

2018 PROFIT/ (LOSS) BEFORE TAX £m*

2019 TURNOVER £m*

2018 TURNOVER £m*

2019 NUMBER OF EMPLOYEES*

2018 NUMBER OF EMPLOYEES*

Dundee

£3.5

£1.8

£50.7

£47.8

284

280

Glasgow

£3.5

£3.4

£26.0

£25.2

318

305

78

Richard Austin Alloys Limited

Glasgow

£3.4

£4.1

£148.6

£116.8

248

237

79

Muir Group Public Limited Company

Inverkeithing

£3.3

£4.0

£65.4

£74.7

280

276

Edinburgh

£3.2

£8.5

£42.4

£42.5

116

109

Aberdeen

£3.2

£2.8

£41.1

£32.3

67

65

Currie

£3.1

£2.2

£92.3

£76.8

154

148

80 81 NR 82

Loch Duart Limited Sco-Bere Seafoods (Holdings) Limited SWL Limited

83

Robertson Metals Holdings Ltd

Inverkeithing

£3.1

£3.3

£34.6

£27.3

35

34

84 NR

D. Geddes (Farms) Limited

Arbroath

£3.1

£2.6

£25.4

£22.9

244

238

85

Raimes, Clark & Company, Limited

Edinburgh

£3.0

£2.1

£32.3

£28.1

280

255

Perth

£3.0

£3.1

£87.6

£44.2

316

261

Stonehaven

£3.0

£5.7

£55.7

£53.9

322

321

Burntisland

£2.9

£1.9

£58.3

£49.8

667

669

Glasgow

£2.8

£2.6

£46.2

£41.9

61

57

Aberdeen

£2.7

£2.9

£33.1

£30.9

358

344

Earlston

£2.6

-£2.1

£304.0

£286.5

1,245

1,262

86 NR 87 NR 88 89 90 NR 91 NR

Morris Leslie Limited Macphie Limited Briggs Commercial Limited Noel Kegg Limited Mcpherson Limited BSW Timber Limited

92

McAlpine & Company Limited

Glasgow

£2.4

£3.5

£64.6

£60.1

768

751

93 NR

Laing Glasgow Holdings Limited

Glasgow

£2.4

£1.6

£30.0

£15.6

141

60

94

Dundas Chemical Company (Mosspark) Limited

Dumfries

£2.4

£2.2

£28.8

£26.1

164

159

Glasgow

£2.3

£1.7

£45.5

£39.7

1,419

1,277

95

AG Restaurants Ltd

96

Quality Food Products (Aberdeen) Limited

Aberdeen

£2.3

£2.0

£29.1

£30.4

70

73

97 NR

Morris & Spottiswood Limited

Glasgow

£2.3

£1.3

£80.8

£67.9

391

386

98

Chisholm Hunter Holdings Limited

Glasgow

£2.2

£2.5

£36.7

£36.0

268

291

99 NR

Whitelink Seafoods Limited

Fraserburgh

£2.2

£0.4

£117.7

£74.0

187

185

100

Cameron Group (Perth) Limited

Perth

£2.1

£2.2

£92.1

£92.8

183

176

12 | The Scottish Family Business Top 100


The Scottish Family Business Top 100 | 13


The Top 100 By Economic Sector The diversity and strength in depth in the sectors represented in the Top 100 Scottish Family Firms continues. Some sectors remain stronger than others in terms of the overall mix with Motor retail, Food & Drink, Property & Construction and the Retail sectors featuring prominently. They represent 54 of the top 100 and account cumulatively for 73% of total turnover, 56% of employees and 66% of PBT. Clearly, these four sectors are of significant importance to the Scottish economy overall.

Sector

2019 No. firms

2018 2019 No. Turnover firms (£m)

2018 Turnover (£m)

2019 2018 2019 PBT (£m) PBT (£m) Employees (No.)

2018 Employees (No.)

Motor Retail

9

8

£7,149.1

£6,661.3

£170.5

£187.2

19,346

16,809

Food & Drink

22

17

£3,779.7

£3,107.8

£460.2

£362.0

16,564

20,656

Property & Construction

23

21

£3,653.4

£1,764.4

£195.6

£130.8

27,602

12,540

Retail

7

8

£1,363.1

£977.5

£104.6

£102.9

14,958

13,557

Transport & Logistics

5

5

£514.1

£718.4

£23.2

£33.3

4,994

4,423

Hospitality

8

6

£466.5

£421.1

£55.5

£34.2

7,262

8,314

Manufacturing

4

9

£296.1

£732.9

£27.1

£76.5

2,176

5,138

Timber

4

5

£713.9

£570.0

£46.6

£60.2

2,897

2,405

Pharmaceuticals

4

1

£302.7

£37.0

£19.2

£2.5

993

345

Other

14

20

£1,716.6

£2,186.0

£151.1

£147.4

15,896

27,553

Total

100

100 £19,955.2

£17,176.4

£1,253.6

£1,137.0

112,688

111,740

14 | The Scottish Family Business Top 100


Turnover Current Year by Sector (£m) 8.6%

Total = £19,955.2

Other £1,716.6

6.8% Retail £1,363.1

3.6% Timber £713.9

35.8% Motor Retail £7,149.1

2.6% Transport & Logistics £514.1

2.3% Hospitality £466.5

1.5% Pharmaceuticals £302.7

1.5% Manufacturing £296.1

18.9% Food & Drink £3,779.7

18.4% Property & Construction £3,653.4

The Motor Retail sector remains the dominant sector contributing significantly to the total revenue of the Top 100, representing 35.8% of total turnover (38.8% last year). Clearly Food & Drink at 18.9% and Property & Construction at 18.4% of total turnover respectively are key family business sectors represented in the Top 100.

The Scottish Family Business Top 100 | 15


2019 PBT by Sector (£m)

36.7%

2019 Employees by Sector

24.5%

17.1% 15.6% 14.7% 13.6%

14.1%

12.1% 8.3% 4.4% 3.7% 2.2% 1.9% 1.5%

13.3% 6.4% 4.4% 2.6% 2.0% 0.9%

Food & Drink £460.2

Hospitality £55.5

Property & Construction £195.6

Timber £46.6

Motor Retail £170.5 Other £151.1 Retail £104.6

Manufacturing £27.1 Transport & Logistics £23.2 Pharmaceuticals £19.2

Total = £1,253.6

Property & Construction 27,602 Motor Retail 19,346 Food & Drink 16,564 Other 15,896 Retail 14,958

Hospitality 7,262 Transport & Logistics 4,994 Timber 2,897 Manufacturing 2,176 Pharmaceuticals 993

Total = 112,688

When it comes to employment, the property & construction sector is the largest employer at 27,602 people which represents 18.5% of the total employed by the Top 100. This sector also generates the most profit amongst the leading family firms in Scotland too.

16 | The Scottish Family Business Top 100


The Scottish Family Business Top 100 | 17


James Johnston & Co. of Elgin Limited Key info

956 number of employees

Turnover

£73.9 Million

At the heart of every compelling story lies a narrative and Johnstons of Elgin is no different. Since 1797, the Johnstons of Elgin signature innovation and quality have been without compare. The Johnston family name has always been synonymous with craft, patience, elegance and luxury. A byword for innovation and benchmark-setting, over the past 222 years, Johnstons of Elgin has defined and redefined the industry, again and again. It’s impeccable credentials stem from a mastery of the yarn and how its craftspeople handle, finesse and manipulate it in ways impossible for any other manufacturing brand to match. Unrivalled technical expertise as manufacturers creates unique possibilities, which, in turn, open up uncharted avenues for the most masterful creations. Johnstons of Elgin’s pioneering history established its luxury credentials and the company’s determination not to stand still carries it perpetually forward. The Johnstons of Elgin creative vision drives its brand ambition. A vision grounded in timeless, classic references such as art, history, architecture and nature that are constantly redefined for contemporary culture through design, craft and innovation. Whilst seasons and influences may change, one constant remains; the quest for beauty and luxury. Johnstons of Elgin creates desirable products which include woven accessories, knitwear, fabrics for apparel and for the home, all designed to resonate with its customers. Precious objects of real beauty

18 | The Scottish Family Business Top 100

Head office Elgin

24 1797 2019 Top 100 ranking

founded

that have great personal meaning in today’s disposable culture. Products to move and pieces to fall in love with. Johnstons of Elgin does this by forging its own path, not by following fads; being aware of trends without pandering to them. Applying a wealth of considerable creative expertise and exploration, designing unique, precious products rooted in imagination, not mania. The Johnstons of Elgin story is one of a family-run business spanning two centuries of tradition and expertise, which originates in the heart of Scotland and takes in the couture houses and catwalks of Paris, London and Milan, the sartorial excellence of Savile Row and beyond. But this has been and continues to be no ordinary British manufacturing story. Johnstons of Elgin has successfully established a flagship store at 77 New Bond Street in London, with further retail presence in Elgin, Hawick, St Andrews and Nantucket. This is a story of a brand simultaneously living within this world and transcending it. A story rooted in innovation, passion and timeless beauty. An everlasting labour of love that has brought Johnstons of Elgin to where it is today and that will continue to shape all of its tomorrows.


James Donaldson & Sons Limited Key info

767 number of employees

Turnover

£153.6 Million

Head office Glenrothes

36 1860 2019 Top 100 ranking

James Donaldson & Sons Ltd (JDS) is a successful family business which celebrated its 150th anniversary in 2010. JDS has grown to become one of the UK’s leading independent processors, manufacturers, merchant and distributors of timber and related products. Originating from one small branch in Tayport, Fife, today JDS has over 750 employees across 28 sites in the UK.

founded

What being a family Business means to us? “Being an independent family business runs right through our mission, vision and values so means everything to us. We do however try to hold ourselves to PLC standards meaning we get the best of both worlds – ultimate professionalism with a family feel.” Michael Donaldson, 6th Generation

The JDS Group comprises of a range of companies including timber importer and distributor James Donaldson Timber Ltd, engineered wood product manufacturer Donaldson Timber Engineering Ltd, timber merchant MGM Timber (Scotland) Ltd, insulation specialist James Donaldson Insulation Ltd, and Nu-Style Products Ltd, a fabrication specialist.

The Scottish Family Business Top 100 | 19


Walkers Shortbread Limited Key info

1,478 number of employees

Turnover

ÂŁ143.1 Million

Walkers Shortbread was founded in the Highlands of Scotland in 1898 and is now run by the third and fourth generation of the Walker family.

59 1868 2019 Top 100 ranking

It started life as a village bakery and because of the quality of its pure butter shortbread it has grown consistently over very many years. Walkers now employ more than 1,500 people in Speyside, and are very proud of their dedicated local workforce of long term employees. Although it stays very close to its roots in beautiful Speyside, Walkers products are now distributed in around 100 countries and is a flagship of Scottish foods with more than 45% of its production exported. The company is the only UK ambient food producer to have been awarded the Queens Award for Export Achievement on four occasions and holds the Royal Warrant for the supply of shortbread and oatcakes to Her Majesty Queen Elizabeth.

20 | The Scottish Family Business Top 100

Head office Aberlour

founded


The Scottish Family Business Top 100 | 21


The Geographical Spread Of Family Firms The statistics stand alone and clearly demonstrate that whilst there are obvious concentrations around the major urban centres, the Top 100 family firms are spread throughout Scotland and make an impact across the country in the communities in which they are based. 2019 Firms (No.)

2018 Firms (No.)

2019 Turnover (£m)

2018 Turnover (£m)

2019 PBT (£m)

2019 Employees (No.)

2018 Employees (No.)

Lanarkshire

31

29

£9,031.9

£8,501.1

£328.6

£314.2

47,621

47,902

Aberdeenshire

13

9

£1,713.4

£1,410.1

£88.8

£86.7

5,649

5,234

Midlothian

12

13

£886.9

£561.2

£93.0

£69.0

8,558

7,223

Fife

7

8

£652.6

£643.2

£32.1

£34.2

4,286

5,175

Stirlingshire

7

6

£2,193.7

£1,387.4

£101.5

£77.5

14,724

10,949

Angus

4

3

£403.8

£370.0

£47.3

£48.2

3,033

2,738

Renfrewshire

4

4

£621.6

£582.0

£37.3

£30.0

4,814

4,684

Banffshire

3

3

£1,378.0

£1,252.5

£313.8

£278.8

4,235

3,952

Dumfriesshire

3

3

£1,017.0

£672.7

£88.1

£91.9

11,987

11,305

Perthshire

3

6

£169.2

£277.4

£13.0

£14.9

761

2,449

West Lothian

3

5

£876.1

£1,006.7

£49.1

£45.0

2,022

5,800

Ayrshire

2

2

£96.8

£89.6

£10.0

£13.4

178

421

Inverness-shire

2

1

£338.8

£43.2

£12.2

£3.7

1,840

1,520

Kincardineshire

2

2

£104.8

£79.0

£7.8

£7.0

405

206

Morayshire

2

2

£113.3

£97.1

£22.9

£10.3

1,110

1,145

Berwickshire

1

0

£304.0

£0.0

£2.6

£0.0

1,245

0

Peeblesshire

1

1

£53.3

£52.6

£5.5

£6.4

220

216

Clackmannanshire

0

2

£0.0

£83.0

n/a

£3.9

n/a

779

East Lothian

0

1

£0.0

£67.4

n/a

£1.9

n/a

42

100

100

£19,955.2

£17,176.2

£1,253.6

£1,137.0

112,688

111,740

Region

22 | The Scottish Family Business Top 100

2018 PBT (£m)


Number of firms by Geographic Region 31 firms

13 firms

12 firms

7 firms

7 firms

Lanarkshire

Aberdeenshire

Midlothian

Fife

Stirlingshire

4 firms

4 firms

3 firms

3 firms

3 firms

Angus

Renfrewshire

Banffshire

Dumfriesshire

Perthshire

3 firms

2 firms

2 firms

2 firms

2 firms

West Lothian

Ayrshire

Inverness-shire

Kincardineshire

Morayshire

1 firm

1 firm

0 firms

0 firms

Berwickshire

Peeblesshire

East Lothian

Clackmannanshire

The Scottish Family Business Top 100 | 23


Turnover by Geographic Region (% and £m)

45.3%

5.0%

3.1%

0.8%

>0.1%

Lanarkshire £9,031.9

Dumfriesshire £1,017.8

Renfrewshire £621.6

Perthshire £169.2

Peeblesshire £53.3

11.0%

4.4%

2.0%

0.1%

>0.1%

Stirlingshire £2,193.7

Midlothian £886.9

Angus £403.8

Morayshire £113.3

Clackmannanshire £43.2

8.6%

4.3%

1.7%

0.1%

0.0%

Aberdeenshire £1,713.4

West Lothian £876.1

Inverness-shire £338.8

Kincardineshire £104.8

East Lothian £0.0

6.9%

3.2%

1.5%

>0.1%

Banffshire £1,378.0

Fife £652.6

Berwickshire £304.0

Ayrshire £96.8

24 | The Scottish Family Business Top 100


PBT by Geographic Region (% and £m)

26.2%

3.9%

0.1%

Lanarkshire £328.6

West Lothian £49.1

Inverness-shire £12.2

25.1%

3.8%

0.1%

Banffshire £313.8

Angus £47.3

Ayrshire £10.0

8.1%

3.0%

0.1%

Stirlingshire £101.5

Renfrewshire £37.3

Kincardineshire £7.8

7.6%

2.6%

>0.1%

Midlothian £93.0

Fife £32.1

Peeblesshire £5.5

7.4%

1.9%

>0.1%

Aberdeenshire £88.8

Morayshire £22.9

Berwickshire £2.6

7.0%

1.0%

Dumfriesshire £88.1

Perthshire £13.0

Employees by Geographic Region 42.2%

Lanarkshire

13.0%

Stirlingshire

10.6%

Dumfriesshire

7.6%

Midlothian

5.2%

Aberdeenshire

4.3%

Renfrewshire Fife

3.8%

Banffshire

3.7% 2.7%

Angus West Lothian Inverness-shire Berwickshire

1.8% 1.6% 1.1%

Morayshire

0.1%

Perthshire

0.1%

Kincardineshire

0.0%

Peeblesshire

0.0%

Ayrshire

0.0%

Clackmannanshire

n/a

East Lothian

n/a

Total 112,688

The Scottish Family Business Top 100 | 25


Top 10 Turnover In terms of revenue, the 10 largest family

The Edinburgh Woollen Mill is a significant

businesses in Scotland generate £10.8 billion

retailer specialising in clothing, along with

annually (53,9% of the total of the Top 100)

interests in homewares and destination

and are significant contributors in terms of

shopping for tourists and continues to generate

employment and income generation too.

significant turnover, as does City Facilities

The contribution of family firms across Scotland reinforces their importance and with five of the top ten in the motor sector, this clearly highlights the importance of the motor sector to the economy as well.

Management which when founded back in 1985 sought to ‘make a positive change in the facilities management industry.’ Lord and Lady Haughey founded their enterprise on the values of collaboration and transparency, replacing client/contractor relationships with long-term,

Revenue from the top ten also continues to rise

mutually beneficial partnerships. Each partner

having grown 32% since the report was first

received a unique strategy, shaped by the needs

published in 2016 (comparative figures from our

of the business and implemented by a bespoke,

inaugural report)

self-delivered model. It is this focus that has

Arnold Clark Automobiles, the independently owned family car dealership leads the way with the largest turnover in the Top 100 Scottish

allowed the City Group to grow from its humble beginnings into one of the world’s most trusted facilities management companies.

Family Firms at £3.9 billion. As a business they

Park’s of Hamilton completes the top five with

are significantly larger in terms of turnover than

a turnover of £761 million. Founded in 1971 as a

any other family firm, representing 19.7% of the

bus and coach operation by Douglas Park, the

total turnover generated cumulatively by the Top

business has grown to become one of Scotland’s

100 family firms in Scotland. They also remain the

largest and most successful motor groups,

largest business in Scotland as reflected recently

operating a diverse portfolio of luxury, niche

in the published results of The Sunday Times Top

and volume franchises from various locations

Track 100.

throughout Scotland.

Second in terms of turnover are William Grant & Sons, the independent family owned distiller that was founded back in 1887 by William Grant who at that time had a dream to make the ‘best dram in the valley,’ which, five generations later, still holds true.

26 | The Scottish Family Business Top 100


2019 Top 10 Turnover £m

2018 Top 10 Turnover £m

£3,931.4

£3,662.4

William Grant & Sons Group Limited

£1,188.1

£1,061.7

The Edinburgh Woollen Mill (Group) Limited

£935.8

£592.1

City Facilities Management Holdings Limited

£821.7

£617.7

Park’s of Hamilton (Holdings) Limited

£761.0

£777.1

John Clark (Holdings) Limited

£741.8

£702.8

Robertson Group Holdings Limited

£713.4

£608.8

Farmfoods Limited

£660.3

£642.7

Eastern Holdings Limited

£606.3

£550.0

Peter Vardy Holdings Limited

£450.2

£438.4

£10,810.0

£9,653.7

Company Name

Arnold Clark Automobiles Limited

* New entry into the top 10 in 2018 so figures for prior years not included ** Roberston Group were reported previously in the published report as they were in the top ten

The Scottish Family Business Top 100 | 27


Top 10 Employers The top 10 largest family business employers in

The third largest employer is The Edinburgh

Scotland employ 56,758 people (50.1% of the

Woollen Mill, the retail business based in

total of the Top 100) and are amongst the key

Edinburgh which is closely involved in every

employers in the country. Top of the list is City

aspect of the product development cycle

Facilities Management Limited, the Glasgow

from the processing of raw material, through

based facilities and maintenance business that

production of the yarn and cloth through to the

was established by Lord and Lady Haughey

design and manufacture of the garments that

and has grown to become one of the largest

are sold through their shops.

privately owned businesses in its sector across the UK, Europe and Australia.

“Family business employment is crucial to Scotland” Fourth largest employer is Castle View Ventures, a privately owned business founded by Frank Bell in 1964 and still owned and managed by the Bell family. Since starting out in 1964 as a contract catering company they have grown to become a group of highly diverse businesses. Today Castle View is helmed by Martin Bell, Frank’s son, but their core purpose remains the same, ‘to provide all kinds of businesses with a management service which is precisely tailored to their individual needs. Although the company has

Top 10 total employees

Other Top 100 employees

grown in size, the service provided is as personal as it ever was, never forgetting that success depends upon clients’ satisfaction.”

Coming second in terms of employment is Arnold Clark Automobiles which has come a long way since starting out back in 1954 in Glasgow with just one garage. The business now employs 11,427 people and is one of the largest car dealer groups in Europe.

28 | The Scottish Family Business Top 100

Completing the top five family business employers are Farmfoods Limited who have served the nation for over 60 years. From a single butchers shop in Aberdeen they have grown to a nationwide operator with more than 300 stores and four distribution centres nationwide.


Family firms are significant employers

fathers, mothers, grandfathers and, in some

across Scotland and as well as providing

cases, generations before them and there is

jobs and incomes they are intrinsically linked

a real sense of pride within these families for

to the communities in which they operate,

the businesses with which they are historically

something the impact of which should never

connected as a family. Family firms look after

be underestimated. In many instances these

their staff too and family business employments

family firms have been around for generations

is clearly crucial to Scotland.

and as the businesses have grown, so have the numbers employed, helping the local and regional economies significantly. It is not uncommon to find families where current employees are standing in a workplace that

Family firms across Scotland are significant employers throughout the country, a fact that needs to be appreciated more widely, supported where possible and never, ever forgotten.

was once the provider of employment to the

Company Name

2019 Number of Employees

2018 Number of Employees

Change

City Facilities Management Holdings Limited

11,992

11,844

148

Arnold Clark Automobiles Limited

11,427

10,672

755

The Edinburgh Woollen Mill (Group) Limited

10,912

10,195

717

7,125

6,416

709

Farmfoods Limited

3,864

3,953

-89

Robertson Group Holdings Limited

2,640

2,095

545

William Grant & Sons Group Limited

2,371

2,113

258

The Malcolm Group Limited

2,157

2,155

2

Forth Holdings Limited

2,154

1,927

227

Wemyss Development Company Ltd. The

2,116

2,117

-1

56,758

53,487

3,271

Castle View Ventures Limited

The Scottish Family Business Top 100 | 29


Conclusion This third year of our research into the family business sector in Scotland clearly reinforces the previous findings and continues to demonstrate the contribution that family firms make to the Scottish economy simply and effectively. Research like this helps to demonstrate the importance of family firms to key decision makers and influencers, helping to dispel the myths that surround the family business space and reinforcing their importance to communities the length and breadth of Scotland, helping to quantify their importance and the financial benefits they generate. Family firms in Scotland are significant and need to be recognised as such. Not just in terms of the employment, wealth creation and income but for the broader implications they have too. Brand and heritage are clearly important differentiators when it comes to international trade and exports benefit when there is a story to tell, a history and a heritage that can be seen in the brand, and the family ownership and involvement shines through. Family firms help to generate revenues internationally and clearly help to put Scotland on the map. They are also crucial to the development of the economy as a whole, clearly having active roles in many of the towns and villages in which they operate and providing a role that goes way beyond a financial one. Family firms invest in their staff and the community and are often giving back to the areas that have helped them become what they are today, a key role to helping many rural and less well regarded areas to survive. This research is important as it proves that family firms are truly the engine room of the Scottish economy and contribute significantly to the prosperity of the nation. Family firms are clearly large businesses in Scotland, significant employers and major contributors to the economy, locally, regionally and nationally and deserve to be recognised for their endeavours. Family firms employ thousands of people and make a difference to towns, cities and rural communities on a daily basis and it is important that the statistics generated in this report make it into the public arena, to help people appreciate and recognise the sector for all the good it does and to help those responsible for shaping policies going forward make sure that the sector gets the support it deserves.

30 | The Scottish Family Business Top 100


Methodology This report has been compiled using data that is

As well as fulfilling the above criteria, we have

available from Companies House and has been

undertaken significant desktop analysis and

analysed with the help of Dr Claire Seaman,

contacted numerous family firms during the

the Professor in Enterprise & Family Business

course of this research to validate their status

at Queen Margaret University, Edinburgh. As

and in doing so have compiled the Top 100

there are no mandatory requirements for family

Scottish Family Businesses with the utmost of

owned businesses when it comes to financial

best intentions.

reporting, nor internationally accepted definitions for a family business, we have devised a robust methodology for use in the compilation of this report.

In compiling this research into the largest family businesses in Scotland the team at FBU Scotland have used various means to make it as comprehensive and accurate as possible.

First and foremost, in terms of defining what is a

However, due to the fact that there is no legal

family business, we have based the research on

requirement to disclose the status of underlying

the fact that “A family-owned business may be

ownership in businesses in the UK, it is not an

defined as any business in which two or more

easy process and we cannot unequivocally say

family members are involved and the majority of

that there are not a few other great Scottish

ownership or control lies within a family.”

family firms out there.

Furthermore:

In the event of any error or omission, we are

• We have based our report on the latest

more than happy to update our data and

annual financial statements available for each

to ensure that any omissions are rectified in

company from Companies House

subsequent versions of this report.

• We have only looked at companies who file their accounts with companies house • We have not looked at companies who have filed accounts for a period of one year or less • We have looked at companies who have filed their latest accounts within the past 24 months • Turnover is greater than £25m • At least one single shareholder (or shareholder group, such as a trust) holds 25% of the shares of the business • The registered office of the business is in Scotland.

The Scottish Family Business Top 100 | 31


Our Sponsor And Supporters Research of this nature could not be possible without the support of our sponsor and partners:

Sponsor

Carbon Financial Partners Limited is one of the UK’s leading independent financial planning, pensions and investment advice firms. We can make this claim based on the quality of the team, our awards, our ethics and our professionalism. At Carbon, the rule is to put our clients’ interests first at all times. We will explain clearly what we can do for you, set out the benefits to you and agree a price for the work with you before we proceed. That way you can weigh up the benefits to you and the cost of the advice so you can make a fully informed decision about whether to proceed. Our advice should be worth considerably more than the fees to be paid. As well as our offices in Edinburgh, Aberdeen and Perth, we have consulting rooms in Glasgow and London.

Partners We would also like to extend our thanks and appreciation to the following people and organisations who have helped in the compilation of this report: Professor Claire Seaman, Queen Margaret University Paul Bready, Craig Corporate Limited Paul Andrews, Family Business United and FBU Scotland

32 | The Scottish Family Business Top 100


About FBU Scotland FBU Scotland is an unparalleled rallying point and voice for the Scottish family business community and an invaluable source of insight into the sector, providing resources for family businesses across Scotland, whatever their size, sector or age. Founded by Paul Andrews who has over

owners, factory tours, networking receptions

20 years experience of championing family

and the flagship events of Scottish Family

firms across the UK and beyond. Supported

Business Week.

by the award-winning magazine and resource centre at www.familybusinessunited.com, FBU Scotland has created an innovative community that affords family business owners, directors and employees the opportunity to meet likeminded individuals, to explore ways of dealing with specific issues, to benefit from access to the best articles and insights from around

Voice Our annual Scottish family business survey has been designed to give Scottish family firms a voice, to share their concerns and aspirations and to share the current ‘pulse of the family business sector’ with advisers, intermediaries and decision makers.

the world, and to be part of a community and

Engagement

representative as part of the voice for Scottish

Social media is here to stay and we actively

family firms too.

embrace it to champion the sector, celebrate

Education Throughout the year FBU Scotland hosts a number of educational events on topics of

the success of family firms and to promote the contribution made by family firms across Scotland.

relevance specifically to the family business

Membership

sector, with academic partners, aimed at

We offer a membership package that provides

disseminating knowledge, sharing best practice

many benefits including a monthly ebulletin,

and providing a forum to learn and address

invitations to member events, social media

specific aspects of family and/or business

engagement and access to discounted member

governance.

rates for our key events too.

Events

FBU Scotland is the home of Scottish family

Recognising the value that family businesses

business.

gain from networking and meeting fellow business owners, we arrange a calendar of events to meet this need – dinners, meet the The Scottish Family Business Top 100 | 33


Contact Us Paul Andrews Founder & Managing Director FBU Scotland Stirling House 226 St. Vincent Street Glasgow G2 5RQ

Become a member of the innovative family business community today. Contact us for more information

07718 001179

paul@familybusinessunited.co.uk

@ScotlandFBU and @FamilyBizPaul

www.familybusinessunited.com

34 | The Scottish Family Business Top 100


Financial planning for the Family Business Owner For peace of mind, try Carbon’s

www.carbonfinancial.co.uk @carbonfinancial

facebook.com/carbonfp The Scottish Family Business Top 100 | 35


familybusinessunited.com 36 | The Scottish Family Business Top 100


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