The Press and Journal (Aberdeen and Aberdeenshire)
BGF-backed companies talk challenges faced
Since it was set up in 2011, BGF – the most active investor in the UK and Ireland – has invested more than £250m in 30-plus businesses in Scotland.
Throughout lockdown, it has remained very much open for business, completing new investments, and supporting its existing portfolio of companies in a variety of ways.
In turn, portfolio companies have demonstrated resilience and, helped by strong underlying balance sheets, have continued to plan for future growth. Four of the companies backed by BGF’s Aberdeen team talk about the impact of the pandemic and the challenges they faced.
Peter Bruce, CEO of catering company, Entier, recipient of the Queen’s Award for Enterprise in International Trade:
“March 2020 saw Entier in a good place, poised to meet – even exceed – ambitious growth plans. Before the month was over three of four divisions were mothballed as a result of coronavirus with zero revenues. Add to that the speculation surrounding the Oil & Gas downturn, and a perfect storm hit the business.
“Difficult times are when strengths in people and organisations come to the fore. From day one, Entier’s team excelled in management of the crisis. The pragmatism, loyalty and collective expertise delivered sound decisions, protecting Entier’s people, clients and focusing on business sustainability.
“Communication has been key both internally and with clients as robust planning and risk management were the daily focus. Entier’s service standards and values have not been compromised; indeed, they have steered through crisis and risk management.
“BGF’s support is in demonstrating confidence in the company to do the right thing. As we begin to emerge from the crisis, our business planning is still looking to future growth.”
Grant Keenan, founder and CEO of Keenan Recycling, the UK’s largest independent food waste collection company:
“The immediate impact was that the collecting aspect of our business dropped to around 30% of usual activity because most of our food and gardening waste outlets closed. That was a painful start.
“We also saw the delay, until August, of what will be transformational for the business, a food waste collection contract for the south of England, which means we’ll cover from the north of Scotland to the south coast of England. The opening of our new facility at Linwood was also delayed.
“We have continued to invest heavily during lockdown and have spent around £1m in new vehicles and machinery for our facilities. Things are now picking up and I expect all our staff to return from furlough in the next week or so. Having come through this, we now see great potential for acquisition and expansion.
“BGF, as they have been from day one, have been extremely supportive of what we are doing. We’ve held virtual board meetings and they’ve always been at the end of the phone if we needed them.”
Chris Martin, CEO of Waracle, one of the UK’s largest mobile app and digital product developers:
“The impact of lockdown was a little bit hairy at first while we waited to determine any changes in customer demand. As it turned out, some small projects were cancelled, and new business slowed. We’re now seeing new business speed up again, cancelled streams of work are coming back, and new ones are being added.
“I couldn’t be any prouder of how all of our staff have responded. They’ve managed to do incredible things, keep everybody close and jolly, all while juggling working from home and in many cases juggling impossible family situations. Like many companies, it’s likely we’ll adopt a hybrid approach to work in the future with a mix of office and home working.
“BGF kept in close contact throughout, checking that all was going well and occasionally asking pertinent questions which made us tighten up on some of the things we were doing. We didn’t have to access emergency funding, but it was reassuring to know they were supportive and there if we needed them.”
Ron Taylor, managing director of Parklands Care Homes, a multi-awardwinning care company in the north of Scotland:
“The Covid-19 pandemic has been the biggest challenge the care sector has ever faced. It has been a traumatic experience for everyone involved, not least our residents and their families, physically separated for more than three months.
“Technology has helped – our care homes have embraced social media and virtual technology to ensure that residents and their loved ones stay connected.
“The sense of community spirit throughout this crisis has been overwhelming. We will be forever grateful to the many individuals and businesses who have supported our care homes during the pandemic.
“The early days of the pandemic were particularly challenging for care teams. Little was known about this new disease and the situation was extremely fluid with guidelines routinely redrawn and PPE difficult to source. But throughout the crisis, our care staff have given their absolute all, working day and night to ensure our residents remain safe and secure. Along with our NHS doctors and nurses, they are the heroes of the Covid-19 story.
“As to the future, we look forward to further growth in new care facilities and employment opportunities.”