Differing fortunes of firms born in a storm

By Simon Willis
Newsnight Scotland

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When we began following four new Highland businesses in 2008 we called our occasional series, Born in a Storm.

Each was attempting to launch a brand new enterprise in the most challenging economic conditions for decades.

And each argued that, if they could weather this storm, they'd be able to sail through anything.

At the start of 2010 it seems as if the worst of the tumult might be over.

January's quarterly figures showed the UK economy was growing slightly, and so it was technically out of recession.

More importantly for our four firms, they're all still in business.

Two of them trade, not with the public, but with other businesses.

So they can act as useful "economic weathervanes".

They can tell which way the economic winds are blowing in their respective industries, and assess market conditions wider than their own experience. So far the signs are positive.

However, the storm gave them all a battering. Market conditions are very different now to when they began so all have had to adapt.

And at least one might yet go down.

LISA MALONE - EQUUS RIDING CENTRE

Lisa Malone started her riding school in April 2008

Winter was always going to be a lean time at a riding school.

However, the exceptional weather conditions in Moray, through December and January, pushed up both heating and feed bills.

It took Lisa Malone somewhat by surprise.

Her business had a superb summer.

The so-called "'stay-cation", with more people holidaying in Scotland, brought a huge financial boost and Lisa bought more horses to cope with demand.

But now that means extra mouths to feed, and more bodies to heat.

Lisa is coping but admits she has learnt a salutatory lesson about budgeting across a full year.

DAVID DIGNAN - TECHNICAL SERVICES

David Dignan's business is thriving

Providing technical project management for forestry, fish-farming and other industries, David Dignan is very optimistic about the future.

"The recession is on the way out," he predicts.

Some larger firms, which hire his company, moved into new markets during the recession while others concentrated on core business.

David says many believe the upturn is coming and are now investing in new equipment, which they hire him to install.

If he's doing well, the big boys are doing well, and Dignan Technical Services has never been busier.

David might hire his first staff soon to cope with demand.

KEN WHITEHEAD - DIGITAL RECYCLERS

Ken Whitehead recycles and sells computers

Recycling old computers, discarded by Scotland's public authorities, has kept Ken Whitehead busy during the recession.

He makes money from the scrap value of the metals stripped from the unwanted machines, but recently a new market has emerged.

The demand from members of the public for reconditioned computers suddenly rocketed.

Ken believes consumers have started purchasing items like computers again, but they want cheaper options and will consider buying second-hand.

"The recession is causing them to be short on cash, (but) they want to spend on things like computers," he says.

DEREK GRIER - KEATEK ENGRAVERS

Derek Grier has doubts over the survival of his business

Derek Grier has serious doubts whether his engraving business will continue through 2010.

A burst water pipe in the ceiling of his workshop flooded his equipment and records.

Derek had partly diversified out of engraving, as he was finding it hard to compete with larger firms.

He had begun making vinyl signs and lettering.

After the deluge he's trying to decide what to do next.

When I asked whether this was the end of Keatek, Derek replied: "I don't know at this time, I can't honestly answer that.

"I need to consolidate everything and have a look."

The storm clouds are parting but the economic waters are still far from calm.

Watch Simon's report on Newsnight Scotland on BBC Two Scotland at 2300 BST on Tuesday 9 February.