As the economy begins to get back up and running, we want to ensure that support for owner managed businesses is targeted where it is most needed, and that Government has the evidence base to prioritise effectively. AAB has been working in conjunction with the Association of Practicing Accountants (APA), a network of 20 professional service firms who collaborate on industry issues enabling better representation and support to the owner managed business sector.

Research among 615 of these businesses across the UK carried out by the APA in August and September suggests that owner managed businesses who have survived the last six months are now more resilient but still face significant challenge and are having to adapt. In particular:

• 82% are confident that they have the access to finance they need to get back up and running
• 72% are confident they will be able to retain furloughed staff once Government funding ends
• Only 7% see Government support being withdrawn as their biggest challenge
• 55% have at least three months cash in the bank up from 41% in April
• 23% reported turnover at lower than 50% of pre-lockdown levels down from 43% in April.

However:

• 28% have less than 8 weeks cash in the bank
• 31% think it likely they will have to make redundancies in the next 3-6 months
• 16% have turnover of between 70% and 100% lower than before the lockdown was introduced

Owner managers are also having to adapt the way they work:

• 49% are likely to make home working a permanent option for at least some of their staff while
• 56% see virtual meetings as the default option going forward.
• Across professional and financial services 76% of respondents indicated that they were likely to make home working a permanent option for at least some of their staff.

The research also indicated strong support for a continuation of the Government’s Coronavirus Business Interruption Loan Scheme (CBILS):

• 63% of those who have applied felt the scheme worked well up from 33% in April

Commenting on the findings APA Chairman Martin Muirhead said:

“The impact of Covid-19 on the owner managed sector has been significant. Nonetheless what our latest research suggests is that those businesses who have survived are now generally more resilient.

“However, we are not yet out of the woods with over 30% of these businesses likely to have to make redundancies in the next 3-6 months and 28% with less than 12 weeks cash in the bank. As drivers of jobs and growth across the real economy these businesses continue to need clear direction and support from Government as the economy gets back up and running.”

The research was carried out among 615 owner managed businesses between 1st August and 2nd September.

Anderson Anderson & Brown LLP (AAB), one of the UK’s leading independent firms of Chartered Accountants & Business Advisors, has announced the appointment of a new Director of Payroll & Taxes. Stuart Law joins AAB’s Payroll & Employment Taxes team to support ongoing growth, with a focus on London and the Central Belt.

Having spent his career in the professional services environment, Stuart brings significant experience and a wealth of knowledge to AAB. He joins AAB from Mazars where, as Head of UK Payroll Services, he led the client relationship teams across Glasgow, London, Birmingham, Liverpool, and Milton Keynes. Stuart’s appointment follows two key managerial appointments, Debbie Barker (Edinburgh) and Farzana Uddin (London) in the payroll team earlier this year. These key appointments to the Payroll & Employment Taxes team enables AAB to build further advisory capacity to support its data driven payroll arm.

Steven Fraser, Partner and Head of Payroll & Employment Taxes at AAB commented, “Stuart is an excellent addition to our senior leadership team at AAB. As businesses continue to transform and payroll becomes increasingly complex, we have experienced an increase in demand for our services. Clients are looking to streamline their operations and achieve greater efficiencies whilst adapting to ongoing challenges in their own businesses, many working with a reduced finance team. Stuart’s expertise adds a further dimension to our payroll offering, enabling us to support clients in response to these challenges in the most effective way.

Stuart will also play a key role in our ongoing digital transformation projects as we continue to support our existing and future client base.”

On his appointment, Stuart added, “I am delighted to be joining AAB and its exceptional payroll team. The firm has a great reputation for being ambitious, forward thinking and delivering innovative solutions for clients. I look forward to working with the team and playing my part in enhancing the presence of the firm in London and the Central Belt as we work together to build on the success achieved to date and our ongoing growth objectives.”

The AAB Charitable Initiative (AABIE), run by one of the UK’s leading independent firms of chartered accountants and business advisors, has pledged over £5,600 to 6 charities across Scotland during the Coronavirus pandemic.

Since AABIE’s inception in 2016, AAB staff have raised over £130,000 and donated over 4,600 hours of volunteer time and during lockdown have committed their latest funding allocation to Aberdeen/shire and Edinburgh charities the Denis Law Legacy, TrYthan, Edinburgh Headway Group, Venture Trust and The Moira Anderson Foundation.

Denis Law Legacy Trust, a registered charity that operates and delivers a number of ‘free to access’ programs and activities for young people in their local communities, will received funding for the purchase of a ‘Panna Knock-out ring’ for their Street Football sessions. This piece of equipment will give young people across Aberdeen the opportunity to participate in Panna Street Football free of charge.

TrYthan, a triathlon group based in Ellon, will receive funding from AABIE to cover the costs of turbo trainers and trainer rollers for bikes to enable the junior members of the club to stay active and connected during the colder, dark winter months. The club has 58 members, 28 of which are juniors, and welcome those of all capabilities to improve their technique and build lasting friendships with likeminded people. Having a sense of community at a time like this is vital, and this indoor equipment will allow for the juniors to maintain this as we step into the winter months.

Edinburgh Headway Group, a charity AABIE has previously supported, will have the costs of new gardening equipment covered by AABIE to support their new gardening group for people who have suffered brain injuries. The garden group will maintain their new outdoor space that will be a place of peace for those suffering the injuries and their families.

Venture Trust, who provide support to those in long term unemployment, addiction recovery, homelessness and involvement in the criminal justice system have received funding to pay for 10 sessions of their new Greenspace therapy programme. The programme will provide one to one ‘walk and talk’ outdoor therapy sessions for young people struggling with their mental wellbeing.

Following on from an increase in demand for their services, The Moira Anderson Foundation has extended their premises, with AABIE donating funding to cover the costs of furniture and toys for a new playroom to deliver play therapy for children who have experienced sexual abuse.

Graeme Allan, AAB Chief Executive and AABIE Trustee, emphasised the importance of fulfilling the 2020 grant rounds, “Although at the time there was uncertainty as to when the projects that AABIE pledged to support would take place, we always knew we would continue this program that has given a helping hand to over 80 fantastic charities in the past 4 years.

This was the time that charities needed us the most, and to provide hope and a light at the end of the tunnel for them and their service users was something we knew we had to do. As lockdown eases, some projects have been able to begin, and we are so looking forward to seeing how things progress.”

As well as the grant round process, AABIE also provides seasonal support and collections. Graeme Allan added, “Before the AAB offices closed, our employees had pledged to donate food to C-Fine and clothing and household items to Home-Start, as well as pledging to donate gifts for the children who use the services of The Yard in Edinburgh.  We’re very much planning on continuing these collections when we are back in the office, and these plans are also helping everyone at AAB stay positive.”

Previous recipients of the funding have included Home-Start, a charity which helps families with young children through challenging times, with sponsorship and donations, CLAN Cancer support, Aberdeen Care and Repair, Sue Ryder Dee View Court and The Yard, a charity which creates inclusive adventure play experiences for disabled children and young people, to fund activities for their 10 – 14 club.

Find out more information on AABIE.

We are very excited to announce the launch of the new Anderson Anderson & Brown Wealth (AAB Wealth) website. Following a busy growth spell expanding into AAB’s Edinburgh and London offices, the team recognised it was time for a refresh.

Their main objective of the new site is to make sure you know exactly how AAB Wealth can help give you confidence in your financial future. The new layout clearly showcases the team’s key services, details how they work, the variety of clients they work with, and ensures you have easy access to insightful resources.

They also wanted the new website to highlight their personality and put a spotlight on the hard work and dedication of the team. It is the approaches and attitudes of who they are that mean their clients stay with them. Although the key services are more recognisable within the world of financial planning, AAB Wealth is not a traditional firm.

AAB Wealth are forward thinking, technology driven and always looking at the bigger picture through the plus factor. They balance offering a deeply personal service with using innovative technology and approaches to manage portfolios; meeting with clients regularly to discuss their investments.

The team are delighted with the site and really think it encapsulates what AAB Wealth is all about. That being said, they know that websites are ever-changing, and are looking forward to updating the pages further to reflect the evolving needs of their clients.

If you have any feedback, questions or suggestions, please feel free to get in touch.

Visit the AAB Wealth site

1 August 2020 marked the official 30th Anniversary of AAB and to mark the occasion we have taken a look back across some of the many standout moments of the last 30 years and captured these in a short video:

 

We hope you enjoy our video and thank you for your continued support.

Anderson Anderson & Brown LLP, one of the leading independent firms of Chartered Accountants & Business Advisors in the UK, sponsors of The Robert Gordon University Best Final Year Student in Accounting and Finance BA (Hons), has awarded the 2020 prize to Daniel Law.

Daniel, who is originally from Arbroath and follows the local team, Arbroath FC, also writes an alternative football blog in his spare time. He achieved a first class honours degree and will start working in practice next month, with a view to gaining his CA Qualification.

Derek Mair, Partner said “We have sponsored the Best Final Year Student award since its introduction in 1997, and continue to be impressed with the exceptionally high standard of candidates graduating from this course.”

As well as having worked with a diverse range of tech businesses, right through from start-ups to high-growth and turnaround, Ian also has significant experience in working with SMEs to provide senior finance support and business strategy advice. He will be joining AAB’s Business Advisory Group in the firm’s Edinburgh office, where he will be focused on delivering flexible finance solutions to support business owners in the tech sector to run their businesses successfully.

With a career spanning experience in both practice and consultancy roles, Ian is an authority on providing clients with innovative solutions that give them more control over their finances. His most recent role was with the Big 4 as the Scale-up Lead for Scotland, advising early stage businesses at Codebase in Edinburgh, Europe’s largest technology incubator. With his considerable experience in the tech sector, Ian will also become a key member of AAB’s dedicated tech sector team. He will assume the role of Head of Tech Strategy, working alongside Partner Brian McMurray, who leads this team.

On his appointment Ian commented, “I am thrilled to be joining AAB and both its business advisory and tech sector teams. The firm has an excellent reputation for being ambitious and forward-thinking, and I am looking forward to playing my part in further developing our offering to both new and existing clients who are looking for innovative financial solutions to support their growth plans.”

Graeme Allan, Chief Executive at AAB added, “We are delighted to welcome Ian to the firm. His appointment adds a new dimension to our existing capabilities across our business advisory and tech teams. The tech sector in Scotland has been building considerable momentum over the last three years and this has only been accelerated in recent months.

“Technology is at the heart of every business now more than ever, and while this provides an opportunity for those companies providing tech solutions to accelerate their growth, they do need effective financial support and advice to enable them to do this. Our dedicated tech team understands the needs of these businesses and what they require to grow, and offers them quick, responsive advice, whatever stage they are at. With Ian’s appointment we look forward to working with more exciting and interesting companies in this space.”

AAB, one of the UK’s leading independent firms of chartered accountants and business advisors, is building on the support it provides to the construction sector as it prepares to ‘re-open’ following lockdown with two key appointments.

AAB has appointed Derek Gemmell as Head of Construction & Property and Stuart Rose as Head of Construction & Property Strategy. Both Derek and Stuart have significant experience in the sector and shall lead AAB’s specialist team providing a full range of services including tax planning, audit & business advisory, mergers & acquisitions, commercial and residential property finance, capital allowances, indirect tax, CIS advice and payroll.

Derek and Stuart’s appointments cement AAB’s commitment to the sector and will be supported by a wider sector focussed team of 30+ specialists including Ricky Cowan (Business Development Director), who together support over 200 clients across property development & investment, housebuilders & contractors, construction supplies, facilities management companies and residential property landlords.

As the construction sector gets ready to ‘re-open’ following lockdown measures imposed by COVID-19, the support AAB’s specialist sector team has been providing has shifted from assisting with accessing government support measures such as furlough and government backed loans to planning ahead and looking to achieve operational and tax efficiencies and streamlining processes and procedures to concentrate on cash flow. This support covers both compliance and advisory services most predominantly focused on working capital, funding and strategy, in addition to tax planning in areas such as corporate structuring and capital allowances in order to deliver the maximum possible value for their business.

Derek commented “These past few months have been incredibly challenging for the sector, and there are a number of areas where businesses need to adapt their ways of working, both in their day-to-day operations and in considering their ‘plan-ahead’ strategy.

Our team are working in partnership with our clients to play our part in assisting them through the ongoing challenges to recover from the last few months, whilst looking ahead to what support they need to build and develop their businesses in the ‘next normal’ and beyond.

A Managing Partner of AAB, one of the UK’s leading independent firms of chartered accountants and business advisors, has urged more businesses to apply for the government COVID-19 loan schemes with the aim of positioning themselves strongly for the ‘next normal’.

Lyn Calder, who is also the firm’s Head of Deals for the Central Belt, said that business owners must plan for their longer-term future, and consider how they will plug the funding gap when we emerge from lockdown and demand for their products and services begins to ramp up again.

Ms Calder also commented on the recently published survey carried out by the British Chambers of Commerce (BCC), which revealed that uptake of the Treasury’s unprecedented financial support packages via the Coronavirus Business Interruption Loan Scheme (CBILS) and the micro-loans scheme, has been relatively low, with 57% of those surveyed not intending to apply for any financial support.

Ms Calder said: “There are a variety of reasons for businesses not taking up these support measures, from worry about taking on debt during this period of economic challenge, to a perception that these loans only apply to those urgently needing cash to see them through the crisis. Others are thinking that if they can get through the lockdown they’ll be ok, but the restart needs to be funded too.

“My colleagues and I at AAB are concerned that many businesses have not considered how they will pay staff salaries and cover raw material costs once trade starts to pick up again. Given that the  furlough scheme will not last indefinitely, and that businesses won’t have the luxury of funding product build from their debtor book, I would advise business owners to consider applying for one of the Covid-19 debt schemes as part of their contingency planning for when they re-start their operations. It would be a prudent step to future-proof any business at the moment.”

With just 13% of all firms attempting to access CBILS having been successful to date, according to the BCC survey, Ms Calder added that time is of the essence in businesses accessing this cash. “The survey also reveals that 48% of those who have applied are waiting for a response, and this only emphasises the need to get the funding application in quickly. If business owners wait until they are almost running out of cash, they could be at the back of a long queue. Making the application doesn’t cost a company anything. Our advice is to start the process now and if you decide you don’t need the money then you can say thanks but no thanks before drawdown.

At the beginning of May, the Chancellor announced a further COVID-19 loan scheme aimed at supporting the smallest businesses impacted by the coronavirus pandemic. The Bounce Back Loans scheme will offer businesses 100% government backed loans of up to £50,000 via a new fast-track finance scheme. Ms Calder commented: “As with the CBILS scheme, we would advise that small businesses consider how this financial support could help them to get back up-and-running in the re-start phase, even if they have sufficient cash-flow to survive the immediate crisis.” It’s important to remember that a business can’t access both the Bounce Back Loan scheme and CBILS. If the funding requirement could be more than £50,000 then it could be the wrong move to take the quick payment and rule out the larger fund.

More information on the support available to businesses, don’t hesitate to contact us directly.

Anderson Anderson & Brown LLP (AAB), one of the UK’s leading independent firms of chartered accountants and business advisors, has announced the new appointment of Andy Shaw as a Partner.

Andy, who will be based in the firm’s Edinburgh office, will lead AAB’s public sector and not-for-profit audit business across Scotland. He will also use his expertise to work closely with the AAB Consulting team on projects with public sector and higher education clients.

Andy has a strong track record of leading external audits for several organisations in the public sector, as well as working with local authorities, central government bodies, social housing groups, higher education institutions and charities. He has also held the position of Head of Internal Audit with a number of Scotland’s public sector bodies.

Graeme Allan, Chief Executive, commented: “We are thrilled to welcome Andy to the firm. Although he joins us at a time when the market is changing, I have no doubt that he will play a key and valued role in our public sector team. Andy’s particular expertise adds a key dimension to our compliance and advisory services, which will not only benefit our clients, but also further enhance our service delivery during these challenging times and beyond.”

Andy added; “I am very pleased to be joining AAB and its exceptional public sector and not-for-profit assurance and advisory team. The firm has a great reputation, born of its ability to deliver for clients with a diverse range of requirements, from compliance services for charities to the delivery of national consulting projects.

“Although I will be meeting many of my new colleagues for the first time ‘virtually’, I look forward to getting to know them and our clients over the coming months, and helping them through these unprecedented times. Beyond this, I relish the opportunity to play my part in further developing AAB’s services in response to our clients’ changing needs.”