AAB moves into North West England after acquisition of Barlow Andrews

A leading professional services firm, AAB, has strengthened its position in the north of England by acquiring Bolton-based Barlow Andrews and its sister entity Beech Business Services.

Established for over 100 years and currently employs 70 people, Barlow Andrews and Beech Business Services collectively provide audit & accounts, tax, payroll, outsourcing and business advisory support to a wide range of SME clients in the North West. The businesses join AAB immediately and will continue trading as Barlow Andrews and Beech Business Services for a set transition period.

John Beevers, Head of Professional Services at AAB commented:

“We are excited to announce the acquisition of Barlow Andrews, which marks an important milestone in our strategic expansion in the North of England, helping AAB to realise our ambitious 2030 growth strategy. Combining our expertise with Barlow Andrews’ deep knowledge of the North West region and its market, we are confident we will drive continued innovation and success for our clients. We look forward to building on this strong foundation and pursuing exciting growth opportunities across the North West.”

Chris Harland, Managing Partner at Barlow Andrews added: “We are delighted to be joining forces with AAB, a company that shares our core values of collaboration and a strong commitment to client service. Over the years, we have built a strong reputation in the North West by focusing on delivering great results and fostering close relationships with our clients. In AAB we’ve found a partner that not only aligns with our vision but also offers the resources and expertise to broaden the support we can provide to our clients. Together, we will continue to prioritise the needs of our clients and continue to deliver high-quality tailored advice.”

Since securing investment from August Equity in 2021, AAB has trebled in size and now employs more than 1,000 people across the UK, Ireland and internationally. The rapid growth journey is set to continue as part of delivering its ambitious growth strategy for 2030.

Budget 2025 Ireland Unpacked!

Analysis and commentary from AAB’s team of tax experts, identifying the key changes and outlining the practical implications of the Budget 2025 Ireland for you and your business.

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Yesterday, Minister for Finance Jack Chambers unveiled the eagerly anticipated 2025 Budget Ireland which many predicted would be a giveaway budget.

The Minister announced his first budget against the backdrop of the recent Apple tax judgment of €13bn. He said that it is imperative that this revenue is not used for day-to-day expenditure or to narrow the tax base and that it is this Government’s view that we should utilise these revenues to address the known challenges that we face in housing, energy, water and transport infrastructure.

The AAB Budget 2025 Ireland Guide will help you check the main changes that could impact you or your business. A summary of the key points are laid out below.

Budget 2025 Ireland Highlights

Income Tax Changes

One significant announcement that will directly impact individuals is the increase in the entry point for the higher rate of income tax. The threshold has been raised by €2,000 to €44,000, allowing taxpayers to enjoy the 20% rate for income up to this amount.

Capital Acquisitions Tax Changes

The Capital Acquisition Tax Thresholds are increasing. The Group A threshold, which includes gifts or inheritance from parents to their children, will rise from €335,000 to €400,000.

The Minister announced a further condition for Agricultural Relief on the transfer of agricultural property. He is extending the six-year active farmer test to the person who provides the gift or inheritance. This is in response to concerns that Agricultural Relief is being used as part of tax planning strategies by wealthy individuals.

Stamp Duty

From today there will be a new 6% Stamp Duty rate for residential property sales worth over €1.5 million. The existing rate of 1% will continue to apply to values up to €1 million, and 2% on values above €1 million.

There will also be an increase in the higher rate of Stamp Duty on bulk acquisitions of houses from 10% to 15% with immediate effect.

Agricultural Reliefs Extended

Recognising the significance of the agricultural sector, Minister Chambers extended several agricultural stock reliefs that were set to expire. He is also broadening the scope of accelerated capital allowances for farm safety equipment by adding further qualifying farm safety equipment types.

Measures to Address Housing Crisis

In his speech the Minister Chambers confirms that it is the government’s priority to continue to accelerate the supply of new homes.

The rental tax credit has been increased to €1,000 for 2025, providing relief to renters.

The mortgage interest relief announced in last year’s budget is extended for another year. This means that the relief will be available assist mortgage holders in respect of the increase in interest paid in 2024 over 2022.

Relief for pre-letting expenses for landlords is extended to the end of 2027. This relief applies to residential premisses which have been vacant for at least 12 months.

Support for Cost of Living

To address the rising cost of living, the government has implemented several measures:

The minimum wage will increase to €13.50 per hour starting 1 January 2025.
Energy credits of €250 will be provided to assist with energy bills.
Reduced 9% VAT on electricity and gas extended until 30 April 2025.
There will be two double payments of Child Benefit in November and December and ‘Baby boost’ payment of €420 for new parents.

Budget 2025 Ireland Key Take-Aways

The Budget 2025 Ireland also includes some key take-aways in relation to business taxes, income tax, and VAT.

Business Taxes changes include:

The small benefit exemption has increased to €1,500. This allows employers to give employees a tax free non-cash bonus of up to €1,500.
Increase in the first year threshold in the R&D tax credit from €50,000 to €75,000 to provide “further cash-flow support” to companies undertaking smaller R&D projects or engaging with credit for first time.
Extension of Employment Investment Incentive, the Start-Up Relief for Entrepreneurs and the Start-Up Capital Incentive for a further two years, to the end of 2026.
New relief for businesses scaling up with the introduction of relief for expenses incurred in connection with a first listing on an Irish or European stock exchange, subject to a cap of €1 million.

Income tax changes include:

an increase in the standard rate band to €44,000, meaning the top rate of income tax will only apply to income above this threshold. There will also be an increase in personal tax credits, employee tax credits, and earned income credits, along with a reduction in the 4% rate of Universal Social Charge (USC) to 3%. The rental tax credit will rise to €1,000 per annum for 2025.

VAT changes include:

The registration thresholds will be raised, with the service threshold increasing from €40,000 to €42,500 and the goods threshold from €80,000 to €85,000.
Additionally, the reduced VAT rate of 9% for electricity and gas will be extended for an additional 6 months to 30 April 2025.
The flat rate addition for farmers will increase from 4.8% to 5.1% from 1 January 2025.

The Minister intends this budget will put in place the policies and measures to continue the positive trajectory and ensure that all our people see a promising and hopeful future in this country.

As accountants and tax advisers, we can advise on how the Budget 2025 Ireland changes will affect you and your business. For more information on this year’s Irish Budget, contact our Tax Team.

AAB’s Tax Division is made up of Tax Specialists who are based in both Ireland and UK. This means our Tax Team are experts on the intricacies and complex reporting requirements of tax jurisdictions across Ireland and Northern Ireland, ensuring we provide the best possible advice to our clients.

Talk to us now for advice on making the most of the opportunities available to you and your business.

AAB Announces Leadership Transition In Ireland

Leading professional services firm across Ireland and the UK, AAB, has announced a new Head of Office within its Island of Ireland operations. Teresa Campbell is set to step into the role as Head of Ireland, succeeding Feargal McCormack, from 1 October 2024.

Currently employing c. 1,000 people across 12 offices globally, AAB is ranked among the top 20 Accountancy Firms by Accountancy Daily. The announcement marks the next step in AAB’s ambitious growth plans, which are driven by a commitment to empowering people and enabling clients.

Feargal McCormack, who has been instrumental in establishing AAB’s high profile, presence and expansion on the Island of Ireland, following the merger with FPM in 2022, will transition into the role of Senior Partner and Head of Family Business across Ireland and UK.

Having founded FPM in 1991, Feargal’s tenure is marked by unparalleled client service, innovation, and impactful contributions to both the community and economy. His profound expertise in the complex dynamics of family business and succession have established him as a recognised authority on the subject, and a pillar of support for many of Ireland’s top family enterprises. This wealth of experience and deep understanding positions him ideally for this vital role at AAB.

“I am incredibly proud of the legacy we’ve built, and grateful for the unwavering dedication of our team. Handing over the reins to Teresa, a leader of such calibre, assures me that our team and clients are in exceptional hands.”

Teresa Campbell, who joined the firm in 2002, has spent over two decades demonstrating key leadership in Audit and Assurance, Business Advisory, and People Development. As the new Head of Ireland, Teresa will co-ordinate closely with the Heads of Offices across AAB to enhance our ability to provide innovative, integrated solutions tailored to the distinct needs of our local market and clients.

Teresa expressed her delight at stepping into this new role at such a pivotal time for AAB: “I am honoured to take up the mantle from Feargal, and guide the wonderful Island of Ireland team into our next chapter, as we continue to work together to go above and beyond, offering clients a bespoke suite of services that cater to their evolving needs.”

Chief Executive of AAB, Emma Lancaster, added: “This transition reflects AAB’s commitment to ensuring seamless leadership continuity. Feargal has been, and will continue to be an immensely influential, highly respected and hugely knowledgeable presence at AAB, both across the Island of Ireland, and England and Scotland. A visionary leader, Feargal has been instrumental in fostering the seamless merger of FPM and AAB, and I look forward to working with him in his new role.

“I would like to extend a warm welcome to Teresa Campbell as she takes up her new role. During her 20-year career at AAB Teresa has amply demonstrated the qualities of a fine leader who is ready to build on the tremendous reputation of AAB for driving business success, and realise our exciting ambitions for further growth.”

Deal boosts AAB Wealth assets under advice beyond £1 billion

AAB Wealth, a leading provider of tailored financial planning and wealth management services, has today announced the acquisition of specialist financial planning firm WealthFlow.

The acquisition marks a significant milestone in AAB Wealth’s growth journey, bringing the total assets under advice (AUA) to over £1 billion.

Edinburgh-based WealthFlow’s experience in managing the intricacies of financial planning for clients with financial settlements complements AAB Wealth’s holistic approach to financial advice, ensuring clients continue to receive expert, personalised guidance.

The deal strengthens AAB Wealth’s position as a leader in the financial planning sector, offering clients across the UK an enhanced range of services to meet specific and complex financial needs.

Andrew Dines, Head of AAB Wealth, commented:

“This is a very exciting development as we continue to expand our service offering, and strengthen our capabilities to deliver specialist financial planning services to a wider audience.

“We’re equally thrilled to report that this exciting deal brings our total assets under advice to more than £1 billion – an exceptional statistic which speaks volumes about the trust placed in our advisors and the quality of their investment strategies.

“WealthFlow Directors Duncan Glassey, Helen Learmonth and their team have built an outstanding reputation within the financial planning profession, particularly in the niche area of financial medical negligence and injury settlements, and we look forward to integrating their expertise into our operations.”

Duncan Glassey and Helen Learmonth added:

“In AAB Wealth we have found a firm that shares our values and commitment to providing the highest standards of financial planning advice, and we can’t wait to start working with the wider team. We are particularly excited about the opportunities this presents for our clients, who will benefit from broader resources including specialist tax expertise. AAB Wealth is such a great fit for us, ensuring the most complex financial needs receive the best possible long-term support, combined with truly independent financial advice.”

This deal marks the third acquisition AAB Wealth has made since January 2023. AAB Wealth was awarded the PFS Financial Planning Firm of the Year accolade for 2023, and has recently been announced as a top-rated firm for 2024 by VouchedFor, the UK’s leading review site for Financial Planners and Advisers.

APA Survey: 28% of Owner-Managers Prioritise Growth

Only 28% of owner-managed businesses see growth as the main priority over the next 12 months, while 65% of these businesses are unlikely to make significant capital investment in the same period. These are two of the key findings of a survey of 512 owner-managed businesses launched by the Association of Practising Accountants (APA) today.

Other findings from the APA survey:

82% of these businesses expect supply-chain costs to rise over the same period
81% expect labour costs to rise
Only 46% feel in better shape to manage these challenges than 12 months ago
83% of respondents rated business support from the outgoing administration as either poor or very poor, while only 30% believe an incoming administration will improve things
Uncertain trading conditions (38%) followed by wage inflation (17%) and labour shortages (14%) were identified as the biggest challenges facing owner-managed businesses

Commenting on the APA Surveys findings, APA Chairman Martin Clapson said:

“Owner-managed businesses need meaningful help and support from Government. Our analysis suggests that many have given up hope of this coming. There is a real opportunity for the incoming Labour Government to re-engage with this vital sector of the UK economy provided it can demonstrate it understands the needs of these businesses.

“Government needs to identify a series of short-term, stop-gap measures to reduce the immediate challenges facing SMEs, including revisiting rises in corporation tax, addressing labour shortages with more flexible migrant policies, incentivising capital investment and being seen to champion the SME sector more broadly.

“There is also a need to take a more realistic view of our future trading relations with Europe, recognising that labour shortages coupled with an altogether more challenging export environment pose a real threat to long-term growth.

“Above all, the Government needs to recognise that uncertainty remains across many sectors of the economy and that businesses want reassurance as well as clear and unambiguous advice and support. This is about adopting a flexible approach to business policy which recognises the many challenges facing owner managers and which prioritises the sustainable growth of this sector.”

If you have any queries about the APA survey result,s please do not hesitate to get in contact with our expert family business team.

AAB Welcomes Niall Pirie As Virtual Finance Function Partner

AAB, a leading professional services firm across the UK and Ireland, is pleased to announce a significant appointment within their Virtual Finance Function (VFF). Aberdeen-based Niall Pirie has joined AAB as VFF Partner, bringing 24 years of financial and professional services experience to the team.

Niall, who has led finance functions across a range of business sizes and types, has a wealth of technical accounting experience and commercial finance knowledge. He has developed specialist expertise in utilising financial data to better inform business decisions and maximise growth opportunities, particularly within Private Equity (PE) backed businesses. This expertise will be instrumental in his new role, where he will foster the growth of the VFF team across Scotland, particularly across the North-east, with a focus on using his experience to support owner-managed and PE-backed businesses.

The VFF team at AAB has experienced year-on-year growth for the last six years. In the last 12 months alone, client numbers have increased by 25%, demonstrating escalating demand for this critical business service.

AAB’s VFF service helps businesses to get the right support at the right time, without the commitment of hiring in-house. A fully scalable approach to their finance function, this specialist support is tailored to the needs of each client and delivered by a specialist team with a track record of supporting businesses across multiple industries. The bespoke cloud-based solution allows businesses to access real-time accounting data, providing valuable insight for making strategic business decisions, with financial experts on hand to support.

Lauren McCluskey, Head of VFF at AAB, commented: “We are thrilled to welcome Niall to our team. His extensive experience and innovative approach will be invaluable as we continue to expand our client base and enhance our services. Having previously worked together, I have witnessed Niall’s dynamic ability to deliver exceptional value to clients, and I am delighted to see him bring that same dedication to our team.

“We launched the VFF service in Aberdeen with just two members and have since grown to a team of thirty-five across offices in the UK and Ireland. We are excited to continue our development in key regional hubs. With Niall’s deep ties to the local Aberdeen area and his wealth of knowledge and experience, his appointment underscores our ongoing commitment to the region and our valued clients who operate here.”

Niall added: “I am excited to join AAB and look forward to working with the talented team to drive continued growth both locally and further afield. Having spent the last 11 years in senior industry roles, and in similar businesses to those we support in VFF, I am looking forward to using my experience to deliver the unique support and unparalleled insights we provide to clients that can better inform their business decisions. I am eager to work with both existing and new clients across AAB, and to help other businesses experience the benefits of this step-change in their approach to finances and accounting data.”

AAB Consolidates Brands to Propel Future Growth

AAB, a professional services firm across the UK and Ireland, has announced a strategic consolidation of its brands, to strengthen its position as a leading provider in the mid-market.

Now employing c.1,000 people across 12 office locations, FPM will transition to be under the brand name AAB and Think People will fully integrate to trade under the AAB People brand name.

FPM was established in 1991 by Feargal McCormack headquartered in Newry. Strong growth each year since 1991 saw FPM expand into a top-tier cross border firm with 5 offices and over 120 team members. In a strategic growth deal in 2022, FPM joined AAB and marked the first private equity investment of its kind across Ireland and Northern Ireland.

Think People, an HR consultancy established by Emer Hinphey and Anne Dougan in 2006 also joined AAB Group in 2022. Headquartered in Belfast, the team brought new skills to the service capabilities of AAB with the introduction of leadership and development services for clients across Ireland and the UK.

This strategic move is designed to simplify and optimise the strength of the overall AAB brand, enhance market presence, and deliver a more integrated experience for clients. AAB’s strategic growth plan, which includes enhancing client engagement, expanding its service offerings and investing in technology, has continued backing from August Equity.

“Our brand consolidation marks a pivotal moment in the next step of our growth journey,” said Emma Lancaster, Chief Executive at AAB. “By bringing our diverse services together under the AAB name, we are not only simplifying our structure but also amplifying our ability to deliver integrated, innovative solutions to our clients. This alignment is crucial as we continue to pursue our ambitious growth targets and expand our footprint across Ireland and the UK.”

A transition period is underway where clients can expect a seamless change with no disruption to services. The unification will enhance the firm’s ability to offer holistic professional services, reinforced by the depth of expertise synonymous with the FPM and Think People brands becoming AAB and AAB People, respectively.

“AAB’s mission has always been to provide exceptional service and value to our clients,” added Lancaster. “By uniting our brands, we will operate more efficiently and effectively, ensuring that our clients continue to receive the best possible support as they navigate their own journeys. I’d like to thank everyone in our team across the business for their continued hard work delivering exceptional support for our clients.”

Feargal McCormack of FPM and Emer Hinphey of Think People added: “As founders of FPM and Think People, we are both immensely proud of the milestones achieved and excited for what’s to come. Transitioning to the AAB brand marks a deliberate step towards our future and highlights the collective strength and shared mission of delivering outstanding service and value to clients. Together, we look forward to navigating this exciting new chapter of growth and possibility.”

These measures are designed to support the rapidly growing business and its expanding client base which has trebled in size since 2021. In 2023, AAB ranked in the top 20 of Accountancy Daily’s Top 75 Accountancy Firms. AAB plans to continue the rapid growth journey and has heavily invested in technology and integration to support these ambitious plans.

AAB’s commitment to its clients remains steadfast, with a focus on delivering unparalleled accountancy, consultancy and advisory services that drive success.

AAB Augment Corporate Finance Service In Yorkshire

AAB, a leading professional services firm across the UK and Ireland, is expanding its corporate finance offering across the North of England with the appointment of two new key team members based in Leeds.

Patrick Lynch joins as Corporate Finance Partner, alongside Harris Jones as Corporate Finance Manager. Both Patrick and Harris will be based in the heart of Leeds, in the office on St Paul’s Street.

Patrick, who brings more than 14 years’ experience in professional services, spent almost a decade at an independent corporate finance firm based in Yorkshire. His experience encompasses both buying and selling roles on transactions, on behalf of SMEs and private equity firms based throughout the UK.

Patrick joins six other Partners and Directors in AAB’s corporate finance leadership team across the UK and Ireland.

Throughout the past seven years as a Corporate Finance Advisor, Harris Jones has amassed significant experience in advising shareholders, management teams, and institutional investors within the mid-market, most recently in the M&A team of a global environmental consultancy group. He combines this role with being a Lecturer of Finance within the Accounting and Finance subject group at Leeds Business School.

Commenting on the appointments, Head of Corporate Finance, Gordon Steele said:

“Welcoming both Patrick and Harris to the team is another key milestone for us. The AAB corporate finance team is the top deal maker in Scotland and Northern Ireland (as per Experian’s M&A Review), and we’re delighted to offer these enhanced services to the North of England. The experience and expertise of both Patrick and Harris will add significant value to our already market-leading team.”

James Hunt, Head of Leeds, added:

“Since AAB entered the Leeds market in 2021 we have introduced an enhanced range of services to support our clients across the North of England. With both Patrick and Harris joining our team here in Leeds we are excited about the addition of end-to-end corporate finance services to the expanding offering we deliver locally, to benefit our clients both now and in the future.”

AAB now has corporate finance team members based in offices across Aberdeen, Edinburgh, Glasgow, Leeds, and Belfast, supporting clients across the UK, Ireland and internationally. The team provides M&A advisory, due diligence/transaction services, business valuations, fundraising support, business rescue and recovery, insolvency, and litigation support.

Recent accolades achieved by the team include being named the Top Financial Adviser for M&A activity in Scotland, according to Experian’s United Kingdom and Republic of Ireland M&A Review, and Transaction Services Team of the Year Award by Insider Media at the Northern Ireland Dealmaker Awards 2024.

Pittsburgh Steelers visit AAB amid new rights to expand brand

(LtoR) AAB Managing Partner Feargal McCormack, former Pittsburgh Steelers quarterback Kordell Stewart and Director of Business of Development & Strategy

AAB Managing Partner Feargal McCormack hosted Daniel Rooney, Director of Business of Development & Strategy at Pittsburgh Steelers (Grandson of former US Ambassador to Ireland) and former Pittsburgh Steelers quarterback Kordell Stewart who played in the only previous NFL Game in Ireland at a pre-season game involving Pittsburgh Steelers back in 1997 at Croke Park.

AAB and the Rooney family’s close association goes back over 30 years when Dan Rooney, then President and CEO of the Pittsburgh Steelers and later US Ambassador to Ireland, hosted Feargal McCormack alongside Seamas Mallon MP and Dr Tony O’Reilly CEO of Heinz Corporation, in Pittsburgh at the foundation of the Newry Pittsburgh Partnership.

In 2000, Dan Rooney became the third person in history to be presented with the Charter of Newry and at this time AAB created a Rooney Room in their Newry office in his honour. During the recent visit to Newry, Feargal McCormack was delighted to host Daniel Rooney and Kordell Stewart in the AAB Rooney Room.

To mark the success of the NFL Global Markets Programme, Six-time Super Bowl champions Pittsburgh Steelers are hoping to host an NFL game here in the future after the NFL franchise was awarded the Pittsbugh Steelers the rights to expand their brand.

The Steelers were founded in 1933 by Art Rooney, whose great-grandparents, James and Mary Rooney, emigrated to Canada from Newry before the family eventually settled in Pittsburgh.

The Rooney family still own the Steelers and the Pittsburgh Steelers current President Art Rooney II (son of Dan and father of Daniel Rooney) said they are looking forward to “growing our fanbase and the love of American Football” in Ireland through the Global Markets Programme.

Court-Backed SME Restructuring Plan Cuts HMRC Priority Debt

The High Court in London recently sanctioned a Restructuring Plan for Houst Limited despite opposition from HMRC, one of the company’s major creditors. AAB PARTNER, SEAMAS KEATING explains the significance of the case.

Restructuring Plans were introduced as a Business Recovery and Rescue option in the Corporate Insolvency and Governance Act 2020. While a number of larger entities have already had Restructuring Plans sanctioned under the new regime, Houst Limited is the first SME to do so. The case is significant as it highlights a potential alternative rescue route for SMEs in financial difficulty.

Companies with HMRC debt

The introduction of secondary preferential status for HMRC in December 2020 heightened concern about the feasibility of existing restructuring options such as Company Voluntary Arrangements (CVA) and Administration for companies with significant HMRC debt.

Up to now, HMRC’s position (which is clearly stated in their published criteria and reflected in HMRC practice) is that they will not accept a CVA or restructuring procedure where unsecured creditors are paid a dividend unless HMRC’s preferential liability is fully discharged.

In the Houst Limited case, HMRC adopted this approach and voted against the Restructuring Plan which proposed both a cram down of preferential debt and a dividend for other classes of creditors. However, despite voting against the Plan, HMRC did not otherwise participate in the Court process.

Significance of Houst Limited’s Restructuring Plan

Although existing recovery processes such as CVA can be efficient, they do not enable a company to seek court approval for restructuring in the absence of acceptance by creditors. The significance of the Houst Limited case is that it shows Restructuring Plans may be an option for SMEs with significant HMRC liabilities. The Judge highlighted that HMRC obtained a better return through the Restructuring Plan than would have been obtained had the business failed.

Hopefully, the outcome in this case may encourage HMRC to take a more commercial approach to voting and consider accepting CVAs and Restructuring Plans, which although they may compromise the return on preferential debt, give a better overall return than the alternative insolvency process.

In a related development, HMRC recently issued guidance stating their intention to be more proactive in exercising their voting rights around proposed insolvency arrangements. However, the guidance does not state whether they will reconsider their position on cram down of preferential debt where this results in a better return to HMRC and gives the company the possibility of being rescued.

Future corporate rescue and recovery

When deciding on the best rescue option for an SME in financial difficulty, the pros and cons of both Restructuring Plans and CVA will need to be weighed up. The type of creditors, and the potential return that can be achieved, will determine the most appropriate rescue mechanism. As always, the earlier a company in distress obtains professional advice, the better the chances of formulating a successful recovery plan. For further information and/or advice, contact our Restructuring & Recovery team.

Here to help

If you want to know more about Restructuring Plans for SME’s, give us a call on 028 9024 3131. We’d be happy to help!