Scottish pastry maker William Sword has become employee-owned, after 132 years and four generations of family ownership.
Transitioning to an employee ownership trust (EOT), the Cumbernauld-based supplier to pie makers, food manufacturers and supermarkets will now be managed on behalf of its 85 employee-owners.
The company also owns The Scottish Soup Co brand, launched a decade ago, which has since grown into Scotland’s largest chilled soup brand, supplying retail and wholesale across the country.
Brothers Douglas and David Sword will step back from leadership after more than 40 years managing the company, though they will advise the business as consultants.
Douglas Sword said he and his brother had wanted to “give back” to their hard-working team.
“While we feel that this is the right time for us to step back, the idea of a trade sale – which might ultimately have led to distant owners and jobs being put at risk – didn’t interest us.
“We have a great team, many of whom have been with us for a long time. We wanted to give something back to the people who have worked so hard for us. Transitioning to an EOT allows us to do exactly that. Our customers also benefit from the continuity of supply.
“It’s a model which has worked really well for others. It has benefits to us, but also to the staff, who are now in control of their own destiny. The business is in their hands now. We are sure they will continue to grow and be successful.”
Douglas Sword will be succeeded as MD by Alexander Gordon, while his brother David’s role of finance controller will be taken up by Caitlin Stevenson.
Godron said: “The move to an employee ownership trust marks an important moment for our business.
“I want to thank David and Douglas for the hard work and dedication they have put into building and guiding the company over many years.
“Their efforts have made this next step possible. Most importantly, this change recognises the commitment of our staff, whose contribution has always been at the heart of the business.
“The future of William Sword Ltd will now be something we can all share in together.”
The transition to EOT was managed by Scottish legal firm Lindsays.
Corporate partner Nicholas Howie called William Sword’s change in ownership a “prime example” of how the model can be used to recognise the expertise and experience of a company’s employees.
“Recognition is growing regarding the success of employee ownership as a means of succession in businesses, with benefits for all parties. I am sure William Sword will continue to go from strength to strength.”
The UK government allows a 50% discount on capital gains tax for owners transitioning to an EOT. As an EOT, the company can now award annual tax-free bonuses of up to £3,600 per employee.
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