ONE of Scotland’s largest steel stockholders and a chartered accountancy practice have become the latest businesses north of the Border to move into employee ownership, taking the overall total to nearly 200.
Stirling-based Alexander (Scotland) & Co, which began life nearly 75 years ago and originally used a horse and cart for deliveries, made the switch after current owner Glenn MacLachlan weighed up his retirement options as he sought to ensure the longevity of the business established by his grandfather.
The firm now operates from two premises, in Stirling and Bathgate, and has 40 staff.
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Details of its shift into employee hands was announced at the same time as Livingston-based Glen Drummond Chartered Accountants had made the same move. The firm advised Alexander (Scotland) & Co on its transition.
At both Alexander (Scotland) & Co and Glen Drummond, company owners have transferred the equity of their businesses into employee ownership trusts.
Mr MacLachlan said: “When we looked at the options with CDS (Co-operative Development Scotland), creating an EOT seemed to tick a lot of boxes. It offered longevity for the business but also gave control to, and rewarded, the people who were a key part of our success in the first place. The process was relatively speedy given everything that was involved, and I can retire now knowing I have left the business in safe hands.”
Chris Wilson, director of Glen Drummond who took over the practice from the founding partner in 2016, said it had always been the intention to hand the business over to its staff.
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Mr Wilson said: “I had been aware of employee ownership for years, having assisted several clients transition their business. I am confident our employees have the right mix of skills, and the positive group attitude needed to continue the success of the business.
"Together they can now guarantee their own job security, something that may have been a worry with an external sale.”
He added: “Clients are at the heart of everything we do. Employee ownership allows our customers to continue getting a quality service from the people they know and trust for years to come.”
Clare Alexander, head of CDS, which is part of Scottish Enterprise and advises firms on succession planning, said: “It is great to see two more Scottish companies embracing the opportunities of employee ownership.
"The advantages are easy to see – not only does it give employees a meaningful stake in their organisation together with a genuine say in how it is run, but employee-owned businesses are also proven to be more resilient during times of economic crisis, more productive, more profitable and have more engaged staff.
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“These companies are a welcome addition to the growing employee-owned Scottish business community and we’re confident many other businesses will see the benefits and follow suit.”
There are now more than 170 employee-owned businesses, and around 1,400 in the UK, in Scotland.
Last week, it emerged that one of the biggest companies in Scotland had made the move. Highland Fuels, which was established 65 years ago, transferred the majority of its shares into the hands of its 250-plus employees. It came after chairman and owner George Shand and his fellow directors had sought to find a business model which preserved the company’s “rich heritage”, while ensuring continuity of operations and employment for the long term.
Mr Shand previously led a management buyout of Inverness-based Highland Fuels in 2001, with that deal having been designed to ensure the company remained in local hands.
He said: “We’re proud of being different. We’re a Highland-based company with a very wide reach. We live our values.”
Asked why the number of Scottish firms moving into employee ownershp is increasing, Carole Leslie, adviser of Ownership Associates, told The Herald: "Pure and simply, awareness. More business owners know about it from customers, suppliers, business contacts.
"We're also seeing more advisers, particularly accountants, putting the EOT on the table for their clients. Probably half my referrals now come from accountants."
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