Readie Construction has become the latest construction company to switch to employee ownership.
The move came after Readie’s shareholders sold all shares to an Employee Ownership Trust (EOT). The sales of shares to an EOT are exempt from capital gains tax and being owned by an EOT will allow Readie to pay all eligible employees tax-free bonuses of up to £3,600 a year.
Employees of the business, founded in 2008 and with an annual turnover of £200m, will be eligible to take part in the scheme after a year’s employment.
Meanwhile, the Readie main board of directors and senior management remains unchanged. A new EOT board will be formed including two Readie directors, an independent trustee and two employee representatives to give the employees representation at senior level.
Stuart Read, chairman at Readie, said: “Many of our staff have been with Readie throughout our rapid growth. The transition to employee ownership was the logical next step in the development of the company. The creation of an EOT enables us to preserve the legacy of the Readie brand and will help cement our status as a leading contractor in the industrial and logistics sector.
“This change safeguards the future of Readie for the benefit of its future leaders and employees, the transition to EOT status acknowledges their contribution to the company’s success and gives all employees an opportunity to share in its continuing success. By creating an ownership culture, we can more effectively incentivise the employees and continue to deliver sustainable growth.”
Paul Stephens, managing director at Readie, added: “The business has continually shown that it is truly committed to stability and growth. Key to our staff and our clients is maintaining continuity of the management team. To have the best team around me in the industrial and logistics sector and move into employee ownership is truly exciting. This change will provide career development and progression opportunities for all of our employees: this has been key to our success so far.”