ONE of the most rewarding aspects of covering the Scottish business scene is following the fortunes of our many successful family-owned firms.

Scotland has an impressive number of family concerns which have been trading for generations and, through characteristics such as hard work, entrepreneurial spirit, and continual planning for the long term, have proven able to thrive even amid the most challenging economic circumstances.

One of their number caught the eye when it published its latest annual results this week.

Motor trade veteran Brian Gilda has been running Falkirk-based Peoples Ford since 1983 and, despite the ups and downs of the industry he has forged his reputation in, continues to look forward. On Thursday, he revealed that Peoples, which has represented Ford for the 40 years it has been in business, was in advanced talks with car makers in China that could see it open at least one new dealership in Scotland next year.

READ MORE: Shares in NatWest plunge as Farage report reveals 'failings'

Mr Gilda said the project is being undertaken to help ensure his company remains at the vanguard of developments in the car market, as electric vehicles look to dominate in the decades to come.

“We’re talking to two manufacturers in particular and are well down the line,” said Mr Gilda, whose firm has three Ford dealerships in central Scotland and three in Liverpool.

“We are entering a period of change in the coming years as the model line-up becomes increasingly more electric.”

While Peoples is planning for the future, it also seems to be doing very well in the here and now. The firm’s latest accounts show that it grew turnover by 11.3% to £306.8 million in the year to July 31, despite fears that demand would be affected by the cost-of-living crisis and rising interest rates. Pre-tax profits dipped slightly to £7.67m from a record £8.48m last time, but Mr Gilda said the 2.5% return on sales achieved by the dealer represented an excellent performance against an industry average of 1% to 1.25%.

“We reflect on these results with delight,” Mr Gilda added. “Despite having come through a period of commercial vehicle supply constraints which adversely affected volumes across the sector, we exceeded our operational benchmarks and financial targets.”

READ MORE: East Lothian: Hotel in 'famed' Scottish golfing region sold

That Peoples, which employs around 350 people, has been able to routinely perform well in recent years is impressive given the wider economic turmoil.

This week, Scottish Chambers of Commerce underlined the predicament facing many firms in Scotland at the present time, as chairman Stephen Leckie noted that inflation, interest rates and labour shortages are “preventing growth and delaying investment”.

The business group’s latest quarterly economic indicator highlighted increasing concern among companies over interest rates, which now stand at 5.25% having been at record low of 0.1% in December 2021, and found business investment – a key driver of growth – had flatlined over the third quarter.

Concern over borrowing rates was reported by half of firms, up from 37% the previous quarter, to reach a five-year survey high. And while sentiment improved regarding inflation it continued to be remain a major worry: 70% of firms said they were concerned about inflation, compared with 75% the previous quarter.

Mr Leckie, who is the chief executive of the Crieff Hydro Family of Hotels, said it was vital the Scottish and UK Governments come up with measures to support business in forthcoming budget statements to ensure Scotland remains competitive in domestic and international markets.

READ MORE: Chivas Brothers reveals plans to build distillery on Islay

He said: “These results indicate challenging trading conditions for firms, with inflation, interest rates, and labour shortages preventing growth and delaying investment. For too many businesses, the priority is firmly stuck on survival.

“Whilst business confidence is starting to pick up from the low levels of 2022, this renewed optimism is not translating into sustained performance and output from firms necessary to get our economy firing again.”

Unfortunately, any support that the Scottish and UK governments may provide in the coming weeks will come too late for one Dundee-based company. On Thursday, provisional liquidators were appointed to Newman Bonar, just six months after it emerged from the ashes of historic textile manufacturer Bonar Yarns. US businessman John Newman acquired the business and assets Bonar Yarns out of administration in April and was bidding to build a presence in the manufacture of materials for sports pitches.

However, despite the injection of “significant funding” from the owner, administrators said a combination of surging costs, particularly energy, and an inability to res-establish contracts with key customers at a sufficient level meant it was no longer viable. The failure is likely to result in the loss of 57 jobs.