New dawn for Fitwise Management Ltd as it becomes employee owned
Fitwise founder chooses employee ownership as his succession solution
The future is looking bright for staff at a Scottish management firm after it was announced the business will become employee-owned.
John Matthews, chairman and founder of West Lothian-based Fitwise Management Ltd, becomes the latest Scottish business owner to choose employee ownership as his succession solution.
Fitwise, which specialises in the management of professional nursing and medical associations and societies, will see 80 per cent of the shares sold to an Employee Benefit Trust, while the balance of the shares will be available to the 25 employees to purchase. The transition will be complete over a five-year period.
Co-operative Development Scotland (CDS), Scottish Enterprise’s employee-ownership arm, has supported the move through advice and guidance on the implementation of the new ownership structure, while specialist project management firm Co-ownership Solutions provided financial, legal and employee engagement assistance.
The move comes as Mr Matthews plans for the future of a business he has spent the last 20 years building. He said: “There is a strong work ethos and good team motivation at Fitwise, something we all want to preserve in its future. By moving the business to employee ownership we can really engage all our employees and help the business move towards a culture where everyone can benefit from our future success.
“It is also reassurance to me as the business founder that Fitwise will continue to develop and grow in the way I envisioned it would.”
Playing a significant role in the changeover will be newly appointed managing director, Neil Watt who joins the company from Stryker where he was the regional business manager.
Mr Matthews added: “I’m absolutely delighted to have Neil on board as the new MD. He brings a wealth of experience, having worked for over 30 years in the healthcare and pharmaceutical markets, with some of the biggest names in these sectors including Johnson & Johnson, Cow & Gate and Nutricia. I believe he will play an instrumental role in our employee-ownership transition.”
Sarah Deas, chief executive of Co-operative Development Scotland, said: “This is a great move for Fitwise. It provides John Mathews with an ideal exit solution, whilst rooting the business in West Lothian and safeguarding jobs.”
Last year’s Autumn Statement introduced new tax reliefs for employee owned businesses. Owners disposing of a controlling interest to an Employee Benefit Trust will not attract Capital Gains Tax. A second relief allows companies owned by an Employee Benefit Trust to pay employees a tax free bonus of up to £3600 annually.
Sarah continued: “The new allowances will mean that in most cases, business owners selling to an Employee Benefit Trust will save on Capital Gains Tax at 10 per cent, so it really is a win-win situation.
Set up in 1992 by John Matthews, Fitwise Management Ltd has been looking after membership databases, publishing journals and newsletters, developing and managing websites, bookkeeping, selling exhibition and advertising space, and running conferences and exhibitions throughout the UK for more than 20 years.
Fitwise Management Ltd has worked with clients including NHS Grampian, Infection Prevention Society, British Association of Urological Nurses, and the Society for Paediatric Radiology among many others.
Mr Matthews added: “This is an exciting and empowering time for everyone involved. We have always been a very people-oriented business with success driven by our staff.
Employee-ownership will give all our workers an opportunity to benefit from the continued growth of Fitwise. It is a natural fit with what is already a non-hierarchical company where decisions were being made by the managers and staff.”
For further information & images please contact:
Bill Ranatunga Tel: 0141 333 0557 / 07770 886950 / branatunga@webershandwick.com
Claire Stanley Tel: 0141 333 0557 / 07557 210989 / cstanley@webershandwick.com
Nick Hanlon Tel: 0141 333 0557 / 07770 886908 / nhanlon@webershandwick.com
About Fitwise Management Ltd
Fitwise was established in 1992 in Bathgate, West Lothian, by John Matthews. It is now based in Bathgate and Southampton, Hampshire. Its focus has always been to deliver a full range of services to professional associations from the healthcare sector – ‘all your association needs under one roof’.
The team has a wealth of experience delivering services to associations of all sizes, with specialists on the team in strategic planning, event management, publication advertising, and membership communications and coordinations, as well as a range of backgrounds in health and nursing.
For more information on Fitwise Management Ltd see www.fitwise.co.uk