Dundee-based cable maker to remain in city after sale to staff

A Dundee-based cable manufacturer that supplies clients around the world has handed control of the business to its employees, retaining operations in the city.

Thanks to a focus on the subsea, 5G telecoms, access control, automotive and industrial sectors, ICS2 Cables achieved its second best year despite supply shortages as a result of the pandemic.

Following the ongoing success of the business, company owners Paul Munro, Ian Johnston and Jeff Smith have now opted for an employee-ownership model to drive further growth. The move sees 100 per cent of the business being transferred to an employee ownership trust (EOT) and the 18 members of staff.

Munro said: “Over the years we have honed our craft and skill to form relationships with our customers, and this is down to our highly trained and trusted team of employees.

Following the ongoing success of the ICS2 Cables business, company owners Paul Munro, Ian Johnston and Jeff Smith have now opted for an employee-ownership model to drive further growth. The move sees 100 per cent of the business being transferred to an employee ownership trust and the 18 members of staff.

“Having set up the business some time ago, both myself and Ian are looking to step down in our positions over time, with Jeff focusing on his other business.

“ICS2 previously received interest from a similar company in England, but it had suggested it would be looking to move operations down south, which we were not prepared to do for the sake of our team and the local area.

“From there we looked at alternative options, and we quickly realised an EOT was the way forward. The idea was put to us by our accountants EQ Accountants and working with Carole Leslie of Ownership Associates alongside Thorntons’ legal team we were able to formulate the best option for all involved with ICS2 Cables.”

He added: “I want to get to the stage where I come into the office and I have nothing to do, retiring in the knowledge that the business is in safe hands; continuing to succeed and evolve under a competent management team.”

Established in 2002, ICS2 Cables was originally based in Glenrothes, Fife, before moving to larger premises in Dundee, after initially looking to purchase additional machinery from an existing manufacturing facility.

Leslie of Ownership Associates said: “ICS2 is a powerhouse of innovation and productivity. By opting for a sale to an EOT, Paul and Ian have secured the future of the business in Dundee.

“Indeed, when we announced the plans to the employees they were hugely relieved that there would be continuity and stability for themselves and the company.

“Dundee has lost too many manufacturing businesses over the years. It's great to know that ICS2 is committed to the area for the long-term.”

The employee ownership trust model was introduced in the 2014 Finance Act to encourage business owners to consider a sale to employees as a feasible succession plan.

Dougie Rae of EQ Accountants added: “This is another great example demonstrating that employee ownership can be a solution for businesses with a relatively small number of employees as well as those with a significant workforce and I would encourage anyone who is looking at succession planning to seriously consider employee ownership as one of the options for their company. The benefits to the seller and the employees can be enormous.”

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