Pett Franklin are delighted to announce the transition of Mail Solutions to an employee-owned company. In November, Mail Solutions – a major manufacturer of envelopes and print solutions – sold its entire issued share capital to an employee-ownership trust (“EOT”) to be held for the benefit of all employees of the company.
Since the introduction of generous tax reliefs in 2014, EOTs have become an increasingly popular exit strategy for companies; the sale of shares to the EOT is entirely free of capital gains tax and employees of the company may receive annual bonuses entirely free of income tax up to £3,600 per employee.
According to Capital Strategies research in 2014, productivity increased 4.5% year on year in employee-owned businesses, operating profits of the top 50 employee-owned businesses increased by 25.5% and employee numbers increased by 3.3% year on year in employee-owned businesses.
About the move, Phil Reid, Director of Mail Solutions, said: “We are very pleased to have made the transition to an employee-owned company and we look forward to reaping the rewards that this should provide in terms of employee engagement and productivity”.