Supporting ICS2 to move to employee ownership

Category: Taxation - Posted On: Sep 30 2021

Our clients, Dundee-based cable manufacturing firm, ICS2 Cables has handed ownership of the business to its employees through an Employee Ownership Trust (EOT), with the whole process being completed in just six months.

Established in 2002, ICS2 Cables was originally based in Glenrothes before moving to larger premises in Dundee. Before its fifth anniversary the company was achieving more than £1m in turnover, and it has just had its second-best year, despite the supply shortages caused by the pandemic.

As accountants and advisors to the company, our Partner, Steven Todd, had initial conversations with owners, Paul Munro, Ian Johnston, and Jeff Smith about their plans to step down over time. Whilst discussing an exit from the business, they made it very clear that they wanted to make sure their staff were safe, and customers looked after so Steven suggested looking at the option of an EOT and got our employee ownership expert, Doug Rae involved.

Paul Munro, Managing Director, said, “When EQ advised us of the option to hand over our business to our highly trained and trusted team of employees, we knew it was the right move for the company. They explained the whole process and guided us throughout, ensuring the best result for us, and for the future of the business – we are all incredibly grateful for their support. I now know that when I retire, the business will remain in safe hands and continue to succeed and evolve under a driven, knowledgeable management team.”

EQ Partner, Doug Rae, said, “I’ve been involved in helping many businesses make the transition to employee ownership and it was a pleasure to help ICS2 make that move. We quickly put together a team of advisors that would ensure the best outcome from the company and completed the transition in six months. It’s another great example of using an EOT as a solution to secure the future of a business and not only keep the team safe but motivated to drive the business forward.”

Working with Thorntons Solicitors and Ownership Associates, 100% of the business has now been transferred to an EOT to the benefit of its 18 members of staff.

Carole Leslie of Ownership Associates, added, “ICS2 is a powerhouse of innovation and productivity. By opting for a sale to an EOT, Paul and Ian have secured the future of the business in Dundee. Indeed, when we announced the plans to the employees, they were hugely relieved that there would be continuity and stability for themselves and the company.”

The existing management team, who now control the company, will look to build on the historic success of the ICS2 Cables business and establish a new platform for the continued expansion of the business in the future. We will continue to support and advise the company and look forward to seeing them thrive as an employee-owned business.

If you are considering exiting your business and want to discuss employee ownership as a potential solution, please get in touch by calling one of our offices or filling in our form with your details and one of the team will get back to you.