Aberdeen-headquartered engineering firm Kinetics Controls and Innovation Ltd (KCI) will transfer 100% of its shares to an Employee Ownership Trust (EOT).
Introduced in 2014, an EOT acts as a shareholding vehicle designed specifically for employee ownership according to Scottish Enterprise.
KCI said that as its founder, chief executive officer and previous owner Roy MacKenzie moved towards retirement, the company was “keen to ensure a strategy and plan was in place to safeguard the future of the company and its valued employees”.
Following the transfer, KCI said its leak sealing solutions business will continue to operate as normal and deliver for its customers.
KCI managing director Kevin Watt said the ownership transition marks a significant milestone for the company.
“[The transfer] reflects our commitment to our employees and the long-term success of our business,” he said.
© Bold Street Media“Through this transfer of shareholding, we can empower our team to continue to deliver the same quality our customers have always received when working with KCI while reinforcing a desire for the company’s continued success.”
“At the heart of this decision is our dedication to protect our employees and commitment to continuously meeting and exceeding our customers’ expectations.”
Mr Watt said enacting a business structure designed to promote collective responsibility will also benefit KCI customers.
“A more collaborative workforce provides a strong focus on delivering quality services, motivating employees to deliver for our customers,” he said.
“This is such an exciting landmark in KCI’s journey, and we are confident it will lead the company from strength to strength.”
In recent years, KCI said its turnover increased from £2.5 million in the 2021-22 financial year to £2.9 million last year.
The Kirkhill-based firm is further projecting 10% growth in turnover year over year for the next five years.
Employee ownership
Employee ownership is a growing trend among Scottish businesses, with close to 200 firms enacting some form of direct or indirect employee ownership.
Research from the University of Stirling showed employee ownership delivers an 8-12% productivity boost, outperforming the UK’s national productivity trend.
The study also showed employee owned businesses (EOBs) were five times less likely to make people redundant in the last three years.
EOBs also invested more in skills training, paid higher wages and bonuses, and had more motivated and satisfied staff.
In addition, these firms are more likely to have a Net Zero strategy and wider environmental sustainability accreditations in place.
While the employee ownership model has increased significantly in the UK in recent years, the number of EOBs is still miniscule.
There were approximately 1,650 EOBs across the UK in October 2023, representing just 0.1% of UK businesses.
