Leeds manufacturer transfers ownership of business to staff

JF Plastics team celebrating.

Managing director of Leeds-based JF Plastics, John Fieldhouse, has transferred almost 80 per cent of shares in the business to its 17 staff.

The establishment of an Employee Ownership Trust (EOT) was advised by the corporate finance team at accountants and business advisers, Garbutt + Elliott.

John founded JF Plastics in the early 1980s, with the company now manufacturing a range of pipe bends for carrying cables and fabricated fittings for the national construction, power and renewable energy sectors, has a £4m turnover.

Projects the company has supplied include The London Olympics site; London Cycle Scheme, Hinkley Point C Power Station, Hindhead Tunnel, and Crossrail.

EOTs were introduced by the Finance Act 2014, to offer business owners considering their departure or retirement a tax break to encourage a move to staff ownership as an alternative to selling the business outright. Following the transfer, all the staff at JF Plastics will benefit from annual tax-free bonuses as the business allows.

John Fieldhouse says: “After considering selling I realised that I did not want to totally part with the company as I’m attached to what I’ve built up and I still enjoy working. I also wanted to make sure my loyal staff are looked after, and I couldn’t guarantee this if I sold to a third party, so I settled on an EOT.

“I have kept a stake in the company so the staff know I will always have a vested interest in its future. I particularly want to keep my finger on the button regarding quoting for bespoke renewable energy and power contracts because that’s where future profits lie.”

Corporate finance partner of Garbutt + Elliot Javaid said: “EOTs are becoming an increasingly popular way to transfer a business and reward the staff who do the work, know the customers and the market.

“They are a good way of generating greater productivity and innovation and we are pleased to have completed this deal successfully with John and JF Plastics.”

SOURCE https://bdaily.co.uk/articles/2021/10/26/leeds-manufacturer-transfers-ownership-of-business-to-staff
Pin It

Comments are closed.