Glasgow-based Tough Construction becomes largest firm in Scotland to move to employee ownership

Glasgow-based Tough Construction has become one of the largest businesses in Scotland to move to employee ownership after handing the reins to its 500-plus workers.

The multi-service construction firm, which celebrates its 50th anniversary next year and works mainly on projects for house builders throughout central Scotland, Perthshire, Fife and Ayrshire, is the latest company in Scotland to announce that it is moving its entire shareholding to an employee ownership trust (EOT).

Shareholders Bob Leishman, George Duncan and Kenny MacKenzie took over the business in a management buyout in 2007, and say that when considering their succession options, keeping the workforce secure was a key priority. They will retire following the completion of the transaction, while Gary Hassan will become commercial director and Mhari Greer is promoted to finance director, while Alistair Lauder takes the MD tiller. Additionally, Carole Leslie of Ownership Associates gave specialist employee ownership support, with legal advice provided by Wright Johnston Mackenzie.

Mr Leishman said a sale to a third party may have disrupted its low turnover of staff. He added: “A sale to an employee ownership trust lets us have our exit, knowing that the company is in safe hands. We have a talented leadership team ready to take over, and it’s time for the old guard to step aside. So far, the news has been well received by staff and clients. It remains business as usual – and that’s good news for everyone.”

The company says it will be good to celebrate its 50th year in business in 2024 under employee ownership. Picture: contributed.

Mr Lauder welcomed the changes: “The shareholders are demonstrating tremendous vision in transferring their shareholding to the trust. I believe it is good for the company and for the employees. I’m confident that with the brilliant individuals we have working with us that the future for Tough Construction will be very bright. On behalf of everyone at Tough I would like to thank Bob, Kenny and George for their hard work, and the opportunities they have created for all employees”.

Graham Cunning, head of corporate finance in Scotland with accountancy firm Azets that has been managing the transaction, said: “Azets are thrilled to have worked with the shareholders of Tough Construction to guide them towards completion of Scotland’s largest EOT to date. We wish them every success with their plans and look forward to seeing Tough Construction continue to grow as an employee-owned business.”