The construction business began 18 years ago with two friends working from their kitchen tables.
Kilmac has grown to be a major Tayside employer with 130 staff across two offices and revenues of £20 million a year.
Now founding directors Richard Kilcullen and Athole McDonald are laying the foundations for a move to employee ownership.
Kilmac is currently involved in the transformation of Broughty Ferry flood defences.
The firm is also working on upgrading Perth City Hall, North Muirton Primary School and the latest development phase of the James Hutton Institute.
Mr Kilcullen, from Dundee, and Mr McDonald, who lives in Perth, plan to remain in place at least for the next three years.
Mr Kilcullen said the move was in part to future proof the business.
“Given the quality of our senior management team, creating the trust ensures Kilmac will be in safe hands going forward,” he said.
“It’s good news for Tayside, with the vast majority of our staff living in Dundee, Angus, Perthshire and Fife.”
Employee ownership to provide job security
The trust is being set up with input from the company’s accountant Andy Ritchie, a partner with Azets.
It is being supported by Thorntons Solicitors and employee ownership specialists, Ownership Associates.
Mr Kilcullen said: “It ensures the company will continue to provide stability for our customers and job security for our employees.”
He said the succession plan was being put in place.
It will offer clarity to staff and customers and avoid “unnecessary disruption”, he said.
Mr Kilcullen added: “We could have found a buyer but we have an experienced and talented team.”
He said the team is “more than capable of taking on the reins” over the next few years.
“The company will be in safe hands,” he said.
“The leadership team knows how Kilmac operates, what makes it tick and what has made us a successful business over many years.
“So why would we look around for a buyer?”
‘We have come a long way’, say Kilmac co-founders
The Kilmac founders first met at the then Dundee Institute of Technology – now Abertay University.
Together they set up Kilmac 18 years ago.
“We knew what we wanted to deliver and have remained true to our principles,” said Richard.
“We have come a long way from the days when our biggest headache was getting the photocopier to work and stop the kitchen worktop being covered in ink.”
Turnover in the first year was around £800,000. Four years ago, it was £10m.
A strategy designed to look beyond their traditional Tayside heartland has resulted in £20m turnover.
Its latest accounts will also show £1.4m profits.
Kilmac joins a number of successful businesses in the area who have opted for an employee ownership trust structure.
