A SCOTTISH firm has celebrated its 30th year in business with a move to employee ownership.
Martin Precision Ltd, an engineering firm based out of Lanark, said the move would help it to “secure the company’s future in its local area”.
Established in 1993, the firm manufactures and supplies component parts for the defence, energy, and aerospace sectors.
The company, which reported a turnover of £5.2 million, said it has 49 skilled employees and six people currently on its apprenticeship scheme.
William Martin (below), who founded the firm in 1993, said: “The business is performing well; it has survived and prospered despite Covid which brought the aerospace industry to its knees. This success is in no small part due to the commitment and skill of our employees, and it is fitting that they have a secure future.
“Employee ownership will also benefit our customers who continue to believe in our ability to provide world-class product and I thank them for their support through the years.”
Martin said he would “retain a small minority shareholding in the business and continue as managing director focusing on our growth strategy”.
The company shareholders sold their majority shareholding to an Employee Ownership Trust (EOT).
Financial director Lorna Gourlay was a keen advocate of the employee ownership structure, the firm said.
Gourlay commented: “I knew the EOT would be a good fit for who we are and what we want to achieve as a business. We have a fantastic team of people at Martin Precision and are proud of our reputation for quality and delivery.
“One of our key pillars is our commitment to developing local talent. This commitment will be reinforced now we’re employee-owned. Our future is secure for the long term, and we can only go from strength to strength.”
Neil Lawson, the firm’s operations director, said: “I’m delighted to see Martin Precision take such a bold and visionary step.
“What we have achieved over the years has been remarkable and it’s brilliant to think that the impressive Martin legacy will continue to thrive in the hands of local people.”
The number of employee-owned firms in the UK grew by 37% last year according to figures released by the Employee Ownership Association.
If the EOT holds the controlling interest in the firm (at least 50% plus one share), then the transaction is free of Capital Gains Tax. The same legislation allows the company controlled by the EOT to pay an annual bonus to staff free of Income Tax up to a threshold of £3600 per annum.
