Workers take over Perth building firm
Glazing company gives ownership to 12 employees
Workers at a Perth construction company have been able to take ownership of the business.
Staff at Balhousie Glazing have become employeeowned, handing ownership of the company, which turns over £1.25 million every year, to its 12 dedicated employees.
Since the decision was made, an employee ownership trust has been formed, holding 100 per cent of the shares on behalf of the employees.
Malcolm Sweeney, who founded the company back in 1993 with Drew Hay, said: “Drew and I had been discussing the issue of succession, and as neither of us had family members in the business, the only option we were really aware of at the time was a traditional trade sale.
“We would likely have been purchased by a rival company, something we didn’t want.
“However, one day we were reading our local paper and spotted an article about a nearby seminar being held be Co-operative Development Scotland the following day and decided to go along.
“It was about business succession and one of the speakers was Bob Anderson, financial director of Bentley’s Shopfitting, an employee-owned company based in Dundee. He spoke about how the employeeowned process had worked for them and the benefits of employee ownership and we were really sold on it.
He continued: “A lot of our staff have been extremely loyal, and it was essential to us that we safeguard their jobs and ensure they could continue paying their Picture by Martin Shields Drew Hay (left) and Malcolm Sweeney (right) have handed the ownership of the business to the employees.
mortgages and providing for their families.
“Being employee-owned would anchor the company in the local area, keeping our team’s extensive skills here too.
“We contacted Co-operative Development Scotland and one of its advisers paid us a visit and gave us more information before we decided to proceed with the employee buyout.”
Co-founder Drew Hay added: “We had a meeting with our employees about the decision and they seemed really happy and ready to embrace their new
role as employee owners.
“With a vested interest in the business, they will reap the benefits of strong performance, so it’s been a positive boost for morale and motivation.
“As well as retaining jobs, employee ownership will ensure the business maintains its values and ethos.
“Much of our work comes from word-of-mouth recommendations, and our reputation, which we have been building for 25 years, is very important to the success of the business.
“A trade sale to a competitor may have affected our standing in the local community or impacted the excellent customer service for which we are renowned, both of which could have a negative effect on referrals.”
This comes as Balhousie Glazing was named as ’best new member’ at the annual Independent Network members’ weekend.
The prize aims to recognise excellence in the door, window and conservatory industry, and all companies need to go through a strict application process before
they can become a member.
The award’s head of partner programmes Karen Lund said: “Best new member is a special award because it announces to everyone that you’re committed to quality and you’ve got the Independent Network message spot on.
“Balhousie has a phenomenal reputation and now, by carrying the IN logo, their customers can see at a glance that their home improvements would be in very safe hands.”