Nursery boss who gave staff ownership of firm didn't want it going to 'anyone else'

The owner of a childcare firm, which runs four nurseries in Edinburgh, has given her 150 staff ownership of the business.

Credit: Anna Kraynova/ Shutterstock

Anne-Marie Dunn, who co-founded Kidzcare in 2001, decided to place 100 per cent of her company’s shares into an employee ownership trust (EOT), as she didn’t like the idea of passing it on to anybody else.

Owner: I couldn’t pass it on ‘to anyone else’

While it may have seemed easier to sell the company to another business, Anne-Marie Dunn said: “I’m delighted to be able to reward these dedicated and loyal employees by gifting them a share of this brilliant business.

“The staff at Kidzcare have supported me throughout this journey and I couldn’t reconcile myself to the idea of passing it on to anyone else.

“As I looked to withdraw from the business, I wanted to find an option that rewarded and empowered the staff into the future. As soon as I heard about employee ownership, I was instantly convinced that this was the vehicle to make it happen.”

Offering over 500 childcare places a day, the childcare business runs four breakfast clubs and six after-school clubs as well as four nurseries.

Kidzcare is the first business in Scotland’s early years sector to transition to employee ownership.

Nursery group Childbase Partnership is also employee owned. The group had a company-wide vote in 2017 to move from individual share ownership of the company to a long term Trust which benefits everybody, equally.

John Lewis Partnership, is believed to be the largest employee-owned business in the UK.

Employee Ownership Trusts (EOTs) were introduced in the Finance Act 2014. For employees, the EOT hands them a direct interest in their future and can result in greater productivity and innovation. If the company is sold in future, employees share in the sale proceeds.

The Employee Ownership Association (EOA) states employee-owned companies who have large employee ownership stakes, contribute £30 billion to the UK economy and are a growing market because co-owned companies are “more successful, competitive, profitable and sustainable”.

Employee ownership usually means there is a board of directors with legal responsibility for running the company, and a professional management structure which is responsible for the delivery of the company’s goals.

The company’s current HR manager Julie MacKenzie will take on the managing director post, as Ms Dunn steps back from her role.

Ms Dunn added: “By becoming employee owned, I am confident that Kidzcare’s values of safety, child development, fairness and kindness will continue, greatly benefiting the children we look after and the people who look after them.”

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