1. Woollard & Henry
A growing asset
for the North-east
Employee ownership case study
MAIN BUSINESS
Manufacturing
ANNUAL TURNOVER
£3.5m
NUMBER OF EMPLOYEES
35
WEB ADDRESS
www.woollardandhenry.com
Since its employee buyout in
2002, Woollard & Henry has seen
turnover climb four-fold with
diversification into new products
and markets.
Established in 1878, the Dyce-
based company is a renowned
manufacturer of dandy rolls–
a cylindrical mechanism for putting
watermarks and designs on paper.
When the major shareholder,
Alistair Henry, fell ill and retired,
the company was faced with
closure. Baxi Partnership, the
employee buyout specialist,
saw potential in the skilled
and committed workforce and
approached the company to fund
an employee buyout.
Since the deal, Woollard & Henry’s
core fabrication skills have allowed
it to diversify into currency-making
equipment, which is sold around
the world, and the design and
supply of fabricated steel people
carriers known as ‘frogs’, used
to transport offshore personnel
between ships and rigs.
The company won a Queen’s Award
for Enterprise in 2009.
Managing Director Fred Bowden
said: “By involving people in the
development and implementation
of strategic options for growth, we
have enhanced our skills, identified
new markets, and diversified into
different product offerings.”

2. Co+operative Development Scotland is a subsidiary of Scottish Enterprise working
in partnership with Highlands and Islands Enterprise.
By involving people
in the development
and implementation
of strategic options
for growth, we have
enhanced our skills,
identified new markets,
and diversified into
different product
offerings.
Fred Bowden,
Managing Director, Woollard & Henry
FUNDING THE BUYOUT
Baxi Partnership financed a £1.3m
employee buy out in 2002.The
cash was provided as a loan to be
paid back over time, allowing the
employees to buy the company.
Half the shares were held by Baxi
and half by the Woollard & Henry
employee benefit trust (EBT)
directly for employees.The first
issue of free shares was worth
£300 per employee. By 2010,
when the shares buy back was
completed, these were worth just
under £1,500 per employee.
THE CHALLENGES
Managing expectations - “In the
first two to three years the business
really struggled, so we weren’t able
to do the good things we’d talked
about,” Bowden explained.
Upheaval - the family members
who previously managed the
business all left.The introduction
of a new management team
added to the disruption of the
buyout process.
Communication - issuing too
much information about company
performance in the early stages
can over-burden people. A gradual,
selective approach works best.
EMPLOYEE ENGAGEMENT
Share ownership - an agreed
percentage of profits is set aside
each year as a ‘partnership
provision,’ to provide employees
with shares and a cash bonus.
The Board - two employee-elected
directors sit on the board and are
fully involved in decision-making.
Weekly meeting - a weekly meeting
is held on a Friday to keep all
employees informed on company
performance, sales, quality and
finance. All employees are able to
question and put forward ideas and
suggestions, many of which have
been successfully implemented.
Annual General Meeting - at the
Annual General Meeting, the
company’s accounts can be examined
and approved by all employees,
and the appointed directors must
retire and stand for re-election.
THE BENEFITS
Efficiency - Woollard & Henry’s
sales to labour percentage–
its measure of productivity–
has improved significantly since
the employee buyout.
Engagement - “From zero aware-
ness previously, everyone now has
a good appreciation of the business
as a whole, market conditions,
company finances and, for example,
why rush jobs or awkward shifts
might happen,” explained commercial
manager Stuart Robertson.
Loyalty - staff turnover at Woollard
& Henry is low, with an average
length of service of 11 years.The
weekly meeting allows employees
to voice any issues they may have.
Skills enhancement - as co-owners,
all employees have had to become
familiar with the “bigger business
picture” and learn new business and
management skills.
Local jobs - the company has hired
apprentices from the local community
and aims to source labour locally
where possible.
For more information or advice on
starting your own co-operative,
please visit www.cdscotland.co.uk
or call us on 0141 951 3055.
Co+operative Development Scotland
is a subsidiary of Scottish Enterprise
and works in partnership with
Highlands and Islands Enterprise