MEDIASCAPE, a Glasgow-based audio-visual company has become the latest Scottish business to transfer to employee ownership.
And it can be revealed that the growing trend for owners transferring shares to staff will lead to more than 100 companies being in staff hands by the end of the year.
Mediscape, which has 24 employees, was established in 2003 by Angus and Shona Knight.
The couple said when they began to develop a succession plan it became clear that transferring ownership to their staff was the best option for the business.
The Knights rejected a number of acquisition offers, saying they wanted to “protect jobs and preserve the business as it operates today”.
“Too often a company is sold and before long, it disappears and the jobs go,” said Shona Knight.
“We couldn’t do that. We have a very talented team of people at Mediascape who have shown such loyalty to Angus and I over the years. It’s time for us to recognise that loyalty.”
ANALYSIS: Employee trusts show future of firms can be about more than cash for founders
Mediascape designs, supplies, installs and maintains audio-visual and videoconferencing systems. Its client list includes the University of Glasgow, Strathclyde University, St. Andrews University, Historic Scotland and the National Trust for Scotland as well as many private and public sector clients.
The business expects revenue for the current year to top £5 million, making it the most successful year in its history.
The couple have retained a 20 per cent stake in the business and have no plans to retire just yet. “One of the attractions of choosing this path is that there will be continuity for Mediascape customers and staff,” said Angus Knight.
“Shona and I plan to stay on for the next few years to ensure a smooth handover and allow the management team time to get to grips with running the business.
“We’re retaining a 20 per cent stake in the business to demonstrate our commitment to the staff that we’re still part of the show.”
Angus and Shona Knight enlisted the support of Carole Leslie, an employee ownership specialist, to assist with the transition. Ms Leslie became a director of the business in December.
She said: “Mediascape is a great example of a flourishing business with visionary founders. Employee ownership fitted with the Knights’ personal aims as well as their aspirations for the continued success of Mediascape.”
Mediascape is the second business this month to transfer to employee ownership, following the Auchrannie resort in Arran. Last year a total of ten firms transitioned.
The latest figures from Co-operative Development Scotland show that there are 93 employee-owned companies operating in Scotland, with approximately 7,000 employee-owners generating a combined turnover of around £930m.
The trend is expected to continue. For owners without a next generation to hand over the reins to, wishing to preserve the business they have built, and reward staff, it provides a viable succession plan when
Ms Leslie said she expected the number of companies in employee hands to soar past 100 this year. “I’m currently working with 10 companies across Scotland who are actively working towards employee ownership and I have around 20 who are seriously considering making the move,” she said.
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