Tough Construction becomes Scotland's largest employee-owned firm

Tough Construction employs 500 people

A construction firm has become Scotland's largest employee-owned business.

Tough Construction, which has 500 staff, has transferred its entire shareholding to an employee ownership trust.

The move came after its three shareholders decided to retire.

Bob Leishman, George Duncan and Kenny MacKenzie had owned the Glasgow-based business since 2007, following a management buyout.

Tough Construction works mainly on housebuilding projects throughout central Scotland, Perthshire, Fife and Ayrshire.

What are employee ownership trusts?

They aim to promote employee ownership by giving business owners the opportunity to sell their shares to a trust free from capital gains tax.

The government initiative does not involve direct share ownership by staff.

Instead, a controlling interest in a company is transferred to an all-employee trust which is then held for the benefit of employees.

Source: PwC

Mr Leishman said: "Our success is largely due to the loyal team we have at Tough Construction.

"We are fortunate that we have a low turnover relative to the sector, and that's largely because we like to think we look after our people well, offering opportunities for training and development.

"A sale to a third party may have disrupted that.

"This move to employee ownership allows the company to continue to offer excellent service to our clients, and secure employment for our people."

Managing director Alistair Lauder welcomed the changes.

He said: "The company will celebrate its 50th year in business next year - it will be good to do that as an employee-owned business."

The switch of ownership was managed by accountancy firm Azets.