Network ROI marks 10 year anniversary by becoming employee-owned
A dynamic Scottish technology services provider, Network ROI, is looking at a bright future by becoming employee-owned.
Network ROI was established in 2003 and is a technology services provider, operating across a broad range of market sectors. It has 15 employees and currently has an annual turnover of £1.57m.
The firm is based in Roslin, outside Edinburgh, and serves a wide range of clients such as Peebles-based online tyre retailers Blackcircles.com Ltd.
Network ROI’s founder, Sean Elliot, identified employee ownership as the best option to safeguard the long-term future of the company while allowing him to exit the business in years to come.”
Co-operative Development Scotland (CDS), Scottish Enterprise’s employee ownership support arm, guided the company’s transition and provided advice on the implementation of the new ownership structure.
Sean Elliot, managing director of Network ROI, said: “Having spent 10 years building the business, I’m delighted that I have found an exit strategy that will allow me to realise the value of the business whilst also ensuring that Network ROI continues to operate successfully and preserves our culture. Being acquired by the employees is the right strategy for Network ROI – it secures its future in Scotland and stability for both staff and clients.”
“As a business owner I firmly believe that employee ownership provides me with a tax effective exit from the company and importantly not only rewards staff loyalty but gives them a real stake in the business they work hard in.”
Sarah Deas, chief executive of Co-operative Development Scotland (CDS), said: “This is a good move for Network ROI and helps safeguard its future. It is a dynamic business that is going places and this promises to be an exciting new chapter for the company.
“Scottish Enterprise has worked closely with the company over the past four years providing an integrated package of support through our account management approach, focusing on strategic business development, marketing and business mentoring.”
Throughout the transition to employee ownership, Co-ownership Solutions provided specialist project management, including legal, financial and employee engagement advice.
The transaction involved the creation of an HMRC approved Share Incentive Plan (SIP) and Employee Benefit Trust (EBT). Initially the SIP acquired 10 per cent of the shares, and eventually the balance will be purchased by the EBT from the company profits.