Flockhart seeks to capitalise on opening up of public sector contracts

Published on Saturday 27 June 2009 13:54

TOM Flockhart, the entrepreneur behind office equipment group Capital Solutions, says he is looking to double profits following the firm's appointment as a preferred bidder for public sector contracts worth more than £10 million a year.

The Edinburgh-based firm is one of only eight companies to have been appointed as suppliers of office equipment to Scotland's public organisations, from health boards to local authorities.

The move, which Flockhart says could increase turnover to more than 20m a year, comes after major changes were implemented by Scottish Government to bidding rules. The changes have opened up around 8 billion of public service contracts to companies in Scotland.

Under previous procurement rules from the Office of Government Commerce (OGC), Scottish companies were often unable to make it on to a list of government-approved suppliers for high-value contracts, such as IT and office supplies, unless they could demonstrate they covered the whole of the UK. That was a requirement even if the contract was only for a Scottish local authority.

Flockhart successfully lobbied the Scottish Executive to change the terms of the UK National Framework Agreements to Procurement Scotland, the new Scottish Government body which seeks to achieve economies of scale for all public bodies.

Flockhart said: "We have been championing these changes for a number of years and are delighted that Scottish businesses have now been given an equal opportunity to tender for Scottish public sector contracts. Within our industry alone, there is the potential to tender for public sector contracts in Scotland worth in the region of 10m per annum. Capturing a significant proportion of this would enable us to further strengthen our team and work closely with other locally approved subcontractors in remote areas such as the Highlands & Islands, ensuring that other small Scottish companies also benefit from this framework."

Capital Solutions was founded by Flockhart in 1979. The firm, which employs more than 150 staff at five locations in Scotland, is expecting profits to reach 750,000 this year on turnover of 13.2m. It targets Scotland's small and medium-sized businesses with a service offering computer systems, software, internet and e-mail connection and training. Further growth has been achieved following three years of investment in refurbishing its McDonald Road headquarters in Leith and building offices in Glasgow and Aberdeen.

Since the announcement of the new structure, Capital Solutions has recruited four new members of staff and is retraining existing members of the 150-strong team to ensure that are well prepared to target different areas of business and fulfil any new contracts.