Cumbernauld-based William Sword says its transition to an employee ownership trust (EOT) will give the company’s 85-strong staff team direct control over their own future as they target continued growth.

Sword is a supplier of pastry to butchers throughout Scotland, as well as to other pie-makers, food firms and stores across the United Kingdom. It has been owned by the Sword family since 1894.

It is also the business behind The Scottish Soup Company, which it launched just over 10 years ago. That has grown into Scotland’s biggest chilled soup brand, supplying supermarkets and wholesalers throughout Scotland.

Brothers Douglas and David Sword, who have each been involved in managing the company for more than 40 years, will be stepping back to consultancy roles as part of the change.

They will be succeeded as managing director and finance controller respectively by Alexander Gordon and Caitlin Stevenson.

Wm Sword Ltd has received legal advice from Lindsays on its transition to employee ownership.

Announcing the sale, Douglas Sword said: “While we feel that this is the right time for us to step back, the idea of a trade sale - which might ultimately have led to distant owners and jobs being put at risk - didn’t interest us.

“We have a great team, many of whom have been with us for a long time. We wanted to give something back to the people who have worked so hard for us. Transitioning to an EOT allows us to do exactly that. Our customers also benefit from the continuity of supply.

“It’s a model which has worked really well for others. It has benefits to us, but also to the staff, who are now in control of their own destiny. The business is in their hands now. We are sure they will continue to grow and be successful.”

David Sword added: “This is a good business, which is part of the community. We have been so fortunate over the years with the team we have had that it feels fitting for the business to begin its next chapter as an Employee Ownership Trust.”

Sword’s range of pastry products includes traditional sweet and savoury, pies and pastries, chilled and frozen pastry products and chilled soups.

Mr Gordon, the firm’s new managing director, said: “The move to an Employee Ownership Trust marks an important moment for our business.

“I want to thank David and Douglas for the hard work and dedication they have put into building and guiding the company over many years.

“Their efforts have made this next step possible. Most importantly, this change recognises the commitment of our staff, whose contribution has always been at the heart of the business.

“The future of William Sword Ltd will now be something we can all share in together.”

Nicholas Howie, a partner in the corporate team at Lindsays, added: “The transition of William Sword to an EOT is a prime example of how the model can be used to recognise and reward expertise and experience of a company’s employees.

“Recognition is growing regarding the success of employee ownership as a means of succession in businesses, with benefits for all parties. I am sure that William Sword will continue to go from strength to strength.”

William Sword founded the family business in 1894, supplying communities in and around Airdrie. The business started specialising in making pastry in the 1950s, moving to its current bakery and production site in Cumbernauld in 1969.

From its inception, the firm has worked with local high street retailers and small Scottish manufactures that have formed the backbone of towns and villages throughout the country.

Moving to an EOT structure will allow the business to retain the customer relationships, skills and experience built over the years in order to keep supporting these vital institutions.

The UK government allows a 50% discount on Capital Gains Tax for business owners transitioning to an EOT. EOTs can also award annual tax-free bonuses of up to £3,600 per year per employee.