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SDC bosses selling the firm to an employee benefit trust

FINANCE

SDC DIRECTORS Brian Fox and Dave Ledsom are selling the Bedford-based contractor to an employee trust.

The pair sold a total of 38,925 of their shares in SDC to the trust in the year to September 2004, which left Mr Ledsom with 17,384 shares and Mr Fox with 8,692.

SDC said: 'An employee benefit trust has been established, which will progressively acquire the share capital of SDC Holdings from the current shareholders who wish to realise their investment in the medium term. Further tranches of shares will be purchased each year from trading profits until 100 per cent is acquired.'

The start of the buyout left SDC nursing a £2.3 million loss before tax after making a £1.2 million profit in 2003, but the firm did turn in a gross profit of £2.3 million. This came after turnover slumped to £62.9 million from £87 million in 2003.

SDC added: 'Turnover reduced largely due to delayed commencement of several major contracts, which are now on site.

Profitability has, however, been maintained at the targeted level of 1 per cent, which the directors believe to be satisfactory.'

SDC traditionally works for the motor industry but the firm's jobs in this sector totalled just £2.7 million. Education provided the biggest source of work with a turnover of £17.8 million.

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