Latest news with #Rutherglen-based
The Herald Scotland
12 hours ago
- Business
- The Herald Scotland
'For us, this is about building a legacy for our team'
Following a period of rapid growth over recent years, there are now nearly 300 employee-owned firms in Scotland. These concerns employ more than 7,500 people and turn over in excess of £1.5 billion collectively. And the number of Scottish firms where staff hold majority stakes, chiefly through employee ownership trusts (EOTs), is expected to continue to increase, despite recent changes to the tax regime, as the Scottish Government targets having 500 employee-owned businesses operating in the country to 500 by 2030. Nicholas Howie, partner in the corporate law team at Lindsays, which has advised on 25 employee ownership deals in recent years, said: 'An exit strategy can be one of the biggest issues facing owners of SMEs (small and medium-sized enterprises) in Scotland. Employee ownership is an increasingly effective - and empowering - way of managing that. It's transformational for many businesses. 'It allows sellers - often founders or families who have run businesses for generations - to continue to play a role in their future, while putting the legal and financial frameworks in place which create a long-term legacy for their employees. 'Owners who sell their shares to an EOT gain an exemption on capital gains tax. But, on top of that, EOTs are really starting to demonstrate their economic worth. Read more: 'The feedback that we've had is that businesses which make the change become more productive and profitable because the whole staff team has a stake in its success, with the ability to award employees annually with bonuses of up to £3,600 per year per employee.' Among the newest to make the change in Scotland is Wetrooms International Group, the Rutherglen-based bathrooms supplies business, which cited ambitious growth plans among the reasons for transferring the majority of its equity to its 80 employees. Founders Brian and Bill Crombie have retained a 26% shareholding following the transition to an EOT. Brian Crombie said: 'For us, this is about building a legacy for our team, recognising the loyalty of our staff. Becoming an EOT was the logical step for us to take. It makes sense for everyone. 'I'm 73 and Bill is 71. We've got ambitious plans for the business while naturally also considering what work looks like for us longer term. We've had approaches, but didn't like the idea of a trade sale, putting the business in the hands of someone who might not understand our unique ethos. Our team deserves better.' Bill Crombie added: 'The business is in a real period of growth with huge potential to expand significantly over the next five years.' Employee ownership is continuing to grow in popularity despite recent changes to the capital gains tax regime for EOTs in the Autumn Budget. The changes will aim, among other things, to 'restrict former owners or persons connected with former owners from retaining control of companies post-sale to an employee ownership trust by virtue of control (direct or indirect) of the employee ownership trust'. They also aim to 'require that the trustees must take reasonable steps to ensure that the consideration paid to acquire the company shares does not exceed market value' and will extend the capital gains tax clawback period from one complete tax year following the tax year of the sale to four complete tax years. Specialist advisor Carole Leslie, director of Ownership Associates, who has helped more than 150 firms make the transition in the last year, said: 'The interest in the EOT structure is continuing to accelerate at pace across all business sectors. As awareness grows, more companies are seeking out a succession option that allows the owners to realise their value in the company tax effectively and allows them to control their own exit from the company. 'It's great news for employees. They can be as reassured as possible that their employment will continue for as long as the company continues to be successful, whereas any other succession option would likely lead to disruption and possible relocation or downsizing.' The benefits that can be achieved from staff having a greater stake and say in how they work are being highlighted today, as Employee Ownership Day takes place.
Daily Record
3 days ago
- Business
- Daily Record
Rutherglen firm shortlisted for prestigious Great British Entrepreneur Awards
Former professional basketball player Adam Pearce is the founder and director of Rutherglen-based Minerva Innovation Group. A former professional basketball player has been named a finalist in the Great British Entrepreneur Awards which recognises the most exciting, innovative and impactful entrepreneurs in the UK. Adam Pearce, founder and director of Rutherglen-based Minerva Innovation Group, has been shortlisted in the Scale-Up Entrepreneur of the Year category. The awards, sponsored by Allica Bank, are known as 'The Grammys of Entrepreneurship' and celebrate the most exceptional and inspiring business stories across the UK. In 2024, the R&D funding and tax specialists firm located at the Red Tree Magenta offices on Glasgow Road, scooped the SME News Business Elite Awards for the second year running. It recently trailblazed the industry by introducing equal parental rights - with all staff, regardless of gender, entitled to one year and five weeks off to be with their newborn babies. Mr Pearce said: 'It's an incredible honour to be recognised alongside some of the UK's most exciting and ambitious businesses and is testament to the hard work of our team and the high standards we set ourselves to deliver sources of R&D funding, namely tax relief, for our clients.' Minerva's R&D tax consultants deal predominantly with small and medium-sized businesses. Their diverse clients include veterinary medicine and livestock farming, racehorse breeders, architecture, construction and engineering firms. And Mr Pearce added: 'Our expertise comes from understanding the finance and the complex processes around research funding regulations. So many different businesses can benefit from R&D grants and tax relief without having to spend all their business hours on R&D. 'Short-term initiatives to improve the delivery of services or the development of goods also qualify under the legislation if there is an 'appreciable' improvement. It doesn't have to be significant and is not limited to laboratories or scientists. 'On average, our clients can generate cash benefits equal to 2.72 per cent of their turnover and 7.30 per cent of their wage bill.' This year's shortlist includes more than 800 entrepreneurs, all recognised for their innovation, impact and resilience. Past winners include the founders of BrewDog, Grenade, ClearScore, Zilch and Unbiased, many of whom were recognised early in their entrepreneurial. The term 'The Grammys of Entrepreneurship' was first coined by serial entrepreneur and Dragons' Den star Steven Bartlett to describe the awards event which brings together 1500 entrepreneurs, investors and business leaders from all corners of the UK. Conrad Ford, chief product and strategy officer at Allica Bank, said: 'We're consistently inspired by the energy and strength of UK SMEs. This year's finalists – from early-stage start-ups to established and family businesses – represent a vital force in the British economy, driving innovation, creating jobs, and making a real difference in their communities. 'We're proud to support the awards, recognising outstanding business leaders who are not only demonstrating resilience in a challenging business environment but are paving the way for future entrepreneurs to follow.' Frankie James, founder of the Great British Entrepreneur Awards, added: 'This year's shortlist are a remarkable group of founders who are changing lives and transforming industries. The quality of entries gets stronger every year, and it's clear that the entrepreneurial spirit in the UK is more alive than ever. 'Many of our finalists go on to become household names, and we can't wait to watch what this year's cohort achieves next.' Winners will be announced at a prestigious awards ceremony on Monday, November 17, at London's Grosvenor House.
Glasgow Times
08-06-2025
- Business
- Glasgow Times
Glasgow bathroom supplies business is now employee-owned
Wetrooms International Group, founded by brothers Brian and Bill Crombie in 2005, employs almost 80 staff, including those working in its Ceiling2Floor branches in Anniesland, Govan, and Kirkintilloch. The Rutherglen-based business has now become Scotland's newest employee-owned company, with the brothers retaining a 26 per cent share in its transition to an Employee Ownership Trust (EOT). Staff have celebrated being handed a greater stake in the firm's success as the business recorded a 20 per cent increase in turnover during the first quarter of 2025. Read more: Spider-Man 4 filming to take over Glasgow city centre this summer Brian said: "For us, this is about building a legacy for our team, recognising the loyalty of our staff. "Becoming an EOT was the logical step for us to take. "It makes sense for everyone. "Most of our staff have been with us for a long time and we have a great management team. "Becoming an EOT opens opportunities for our people to develop their careers, brings benefits to us and provides a level of comfort and confidence to the staff, suppliers and customers we work with that Bill and I are still here. "It's the ideal fit." Bill said: "The business is in a real period of growth with huge potential to expand significantly over the next five years. "We have the right team in place to achieve that." Trustees from the workforce will oversee the business as part of the new EOT structure. Wetrooms International was guided through the transition to employee ownership by Ownership Associates, with assistance from Reference Point Advisory and legal advice from Lindsays. Read more: Glasgow learning campus set to build 'stronger communities' thanks to grant Matthew McPhee, Anniesland branch manager at Ceiling2Floor, said: "Our transition to an EOT is a really positive step. "While it's business as usual for us and our customers, the change internally gives our management team greater involvement in the business operations, which is really exciting. "I'm looking forward to this new chapter." Nicholas Howie, a Glasgow-based partner in the corporate law team at Lindsays, said: "Brian and Bill's decision to transition to an EOT allows them to continue to play a key role in the future of the business while putting a legal and financial framework in place that creates a long-term legacy for their team. "It's the ideal fit for them." Carole Leslie, Ownership Associates director, said: "It's fantastic to see a growing business such as Wetrooms realise the positive impact of employee ownership, not least allowing the team who have helped deliver its success so far to retain control of its future and share the benefits."
