Tag: Ownership Associates

Edinburgh business become Scotland’s first employee-owned childcare firm

OWNERSHIP of an Edinburgh childcare company has been handed over to its 150 dedicated staff in what is believed to be a sector first in Scotland.

Kidzcare has announced its transition to employee ownership with 100% of the company shares now placed into an Employee Ownership Trust (EOT) by owner Anne-Marie Dunn who co-founded the successful business in 2001.

The childcare specialists operate four nurseries, four breakfast clubs and six after-school clubs for children, offering options across Edinburgh, from Portobello to Bruntsfield and Fox Covert.

Ownership Associates, a specialist adviser to businesses considering establishing an EOT, provided support to the Kidzcare owner and employees throughout the process in what is believed to be the first business in the Scottish childcare sector to transition to employee ownership.

Anne-Marie Dunn said: “I’m delighted to be able to reward these dedicated and loyal employees by gifting them a share of this brilliant business. The staff at Kidzcare have supported me throughout this journey and I couldn’t reconcile myself to the idea of passing it on to anyone else.

“As I looked to withdraw from the business, I wanted to find an option that rewarded and empowered the staff into the future. As soon as I heard about employee ownership, I was instantly convinced that this was the vehicle to make it happen.

“By becoming employee owned, I am confident that Kidzcare’s values of safety, child development, fairness and kindness will continue, greatly benefiting the children we look after and the people who look after them.”

The business turns over £3 million a year and provides high quality childcare for more than 500 children a day around the city.

Anne-Marie added: “Our current HR Manager, Julie MacKenzie, who has been with us for more than eight years will take more of a managing director role as I gradually step back in the next few months.

“We have planned for a seamless transition so the business can smoothly enter its next chapter, and crucially, we are in control of how that happens best for all stakeholders.

“The transition into employee ownership has been very easy.  Business transactions like this can be daunting and complicated but I have been so lucky to have a team of experienced advisors in Lindsays and Ownership Associates. They have guided me every step of the way.  Nothing was a problem for them.”

Carole Leslie of Ownership Associates, who has worked on the transition of more than 80 businesses to the succession model, said: “It has been a great experience assisting Kidzcare to make the move to employee ownership. It was clear that this was the obvious option for the company and I’m certain the firm will fast see the benefits of this model of ownership.

“It has provided an exit plan for Anne-Marie, potentially life changing differences to her staff, and most importantly ensured that the quality of care for children remained at the heart of the business.

“This is a shining example of the business model benefiting everyone involved in the company. It also highlights the strong positives it can have on an industry like childcare.”

Douglas Roberts of Lindsays added: “Kidzcare has a brilliant reputation in Edinburgh and it was an honour to help the company with the legal aspects of its move to employee ownership.

“Parents trust the staff at Kidzcare to look after their children and Anne-Marie trusts her loyal employees to keep the values and high standards of Kidzcare. It was clear that employee ownership was ideal for Anne-Marie’s succession plans and I’m sure Kidzcare will hugely benefit from being employee owned.”

Ownership Associates works exclusively within the employee-owned sector, supporting companies on their move to employee ownership and working with established employee-owned businesses enabling them to maximise the ownership advantage.

For more information on Kidzcare, please visit: https://www.kidzcare.org/

Leith’s Wee Blue Coo ‘moo-ves’ to employee ownership!

A PRINT and design firm based in Leith has rewarded its employees with the keys to the business following their hard work during the global pandemic.

Launched from the living room of couple Bob and Joelle Kirkpatrick in the middle of the 2008 financial crash; Wee Blue Coo Ltd has established itself as a successful business, dispatching thousands of products globally each week and selling its products on multiple online marketplaces.

Bob and Joelle were both made redundant from their jobs in 2006 before setting up their business, creating posters from public domain images to retail on eBay. Fast forward 15 years, they now have a strong team of 30 members of staff – some of which have been employed for more than 10 years – and have an annual revenue of more than £2 million. 

Having previously gifted a 10% shareholding to long term employee Allan Gray for his hard work and dedication, the three shareholders agreed that the move to employee ownership was in line with the company’s values by safeguarding the future of the business for the benefit of its employees.

The entrepreneurs began exploring the succession model in 2019 before enlisting the help of David Morrison of EQ Accountants. The owners began the process of transitioning to an Employee Ownership Trust at the start of 2021 with the move being facilitated by expert Carole Leslie from Ownership Associates as well as the teams at EQ Accountants and Anderson Strathearn.

Bob Kirkpatrick said: “There are perhaps more well-known ways to make an exit from a business, however, this was the only real option to ensure we safeguarded the futures of those who have contributed to our company’s success.

“The Employee Ownership Trust seems like a perfect and logical way to structure any business.”

Joelle Kirkpatrick added: “Being a people led business has always been the very essence of who we are, which is why becoming an Employee-Owned business was the only option that was seriously considered.

“Running our business this way has ensured we have a motivated and dedicated team who feel valued. That has always been more important to us than the bottom line. Relaying this news to our team has, without a doubt, been the highlight of my career so far.”

Bob and Joelle have always sought to take care of their staff with perks such as flexible working and providing private healthcare to all employees with more than one years’ service.

Naturally the couple felt this was the next step for their business. The team were shocked and delighted at the news and are very excited at being given the opportunity to shape the future of Wee Blue Coo Ltd.

Graeme Slater, Warehouse Manager, said: “Now that we are an employee-owned company it means that we all have a say in the direction the company takes in the future.

“This is a great opportunity to help us to grow as a company and offers us the chance to enjoy a more secure and prosperous future.”

David Morrison, Partner at EQ Accountants, said: “Having advised Bob, Joelle and the team for many years, it is great to see them safeguard the future of their business by handing control to their dedicated workforce.

“This is great example of using an EOT as a solution to succession, whilst ensuring that employees are rewarded for their hard work. We look forward to continuing to support Wee Blue Coo as they thrive as an employee-owned business.”

The Employee Ownership Trust was introduced in the 2014 Finance Act to encourage business owners to consider a sale to employees as a feasible succession solution.

Founder of Ownership Associates, Carole Leslie, who has worked on the transitions of more than 80 private businesses to the succession model, said: “We are continuing to see increased interest from a variety of different businesses across contrasting sectors in making the move to employee ownership.

“It is inspiring to see two entrepreneurs succeed in their business throughout the difficulties of redundancy and a global financial crash. It is testament to their hard work that they have reached this momentous milestone.

“Bob and Joelle have always looked to put their staff first, and this transition is another chapter for the couple and the business. I would like to congratulate Wee Blue Coo Ltd, and wish them all the best in their future endeavours.”

Ownership Associates works exclusively within the employee-owned sector, supporting companies on their move to employee ownership and working with established employee owned businesses enabling them to maximise the ownership advantage.

For more information on Wee Blue Coo Ltd, please visit: https://weehappybox.com/

For more information on Ownership Associates: https://ownershipassociates.co.uk/

Kitchen design studio puts the business in the hands of its team

DEDICATED staff at a kitchen design business have been given full control of their futures as it becomes the first employee-owned firm of its type in the UK.

Cameron Interiors, which has a studio in Edinburgh’s Dundas Street, has become renowned throughout Scotland for luxury German kitchens – and is the country’s only Bulthaup dealer, regarded as the most exclusive kitchen brand available.

Founded in 1979 by Leonard Cameron, since 1997 it has been owned and run by Managing Director Kirsten Robeson and her husband Ian. It has since grown to a team of 12 across the two locations, supported by a dedicated and trusted installation team, some of whom have been with the business for more than 40 years.

Having initially considered a trade sale, this idea was quickly rejected and instead they chose to entrust and empower their dedicated team, who work with discerning private clients, architects and carefully selected developers such as Edinburgh based Square & Crescent.

Kirsten, who is originally from Glasgow and has been with the firm since leaving college in 1993, said: “This is my chance to ‘pay it forward’ to a brilliant team that have enabled us to cement our position in the market and allow us all to look forward to a bright future.

“Designing kitchens at this upper end of the market is a deeply personal process and the people and the service are as essential as the unwavering quality of the product.

“The notion of selling to a trade buyer was a non-starter, as so much would be put at risk. When I found out about employee-ownership I was intrigued – and huge thanks to Linzi Wilson of Consilium for guiding us through the process as smoothly as possible.”

All shares of Cameron Interiors have now been placed into an Employee Ownership Trust with all staff immediately becoming beneficiaries. In time, all employees can benefit from an annual share of any profits.

To ensure a smooth transition, Kirsten will remain MD for the medium term, fully supporting and advising the business before ultimately retiring with Ian to spend more time with their family.

She will also take a seat on the Trust Board alongside Edinburgh manager Louise Delaney, who has many years’ experience working to grow the business and has played a crucial role in its east coast expansion. Aileen Wilson will remain Glasgow store manager, having played an integral role in the management team.

Kirsten had been unaware of the employee ownership option until a conversation with her accountants, Consilium CA. Partner, Linzi Wilson introduced the idea, and as Linzi explained how the Employee Ownership Trust worked, Kirsten saw this as the ideal solution.

Linzi said: “Consilium are delighted to have advised Cameron Interiors on the successful transition to Employee Ownership.  It has been a pleasure to work with Kirsten and the team and look forward to the business flourishing under the new ownership structure. 

“It was evident from our initial discussions with Kirsten that preserving the legacy of the business and protecting the workforce and her loyal clients were significant priorities for her when considering the options for succession. 

“This is the third Employee Buyout we have advised on in recent months, all completed since the onset of the Covid-19 pandemic.  Employee Ownership can be an excellent solution for business owners who are considering their succession planning options.

Carole Leslie of Ownership Associates also advised on the deal. With demand for the succession model growing year on year, Carole has now helped more than 60 businesses achieve their goal.

Carole said: “Cameron Interiors is the embodiment of quality kitchen and interior design in Scotland – renowned not just in Glasgow and Edinburgh, but throughout the country.

“Brands like theirs are so often family affairs, making succession difficult. In becoming the first to go through employee ownership they are blazing a trail, one that I’m sure many more will follow.”

April Bingham, Head of Corporate, Bellwether Green, provided legal advice. 

April said: “It was fantastic to work with Carole and Linzi again and for the first time with the team at Cameron Interiors.

“It is obvious that Kirsten was extremely keen to find a path for the company that embraced the whole team and inspired them to participate in its onward journey.”

For more information on Cameron Interiors, visit: https://cameroninteriors.co.uk/