Engineering group puts firm in hands of employees

TYNESIDE engineering group EDC has marked it 30th year in business by becoming an Employee Ownership Trust.

The group – which has bases on the Team Valley, Gateshead, and in Erskine, Scotland – supplies, installs and repairs drives and motors for a range of industries and blue-chip companies and also launched an air compressor division in 2016.

The shareholders have sold 100% of the company, which now employs 47 staff across its two sites in Erskine and Gateshead, to the trust.

The employees of EDC voted three directors to the board including David Kerr and Amy Reilly from EDC Scotland and Matthew Hutton from EDC North East, who is the the EDC North East office manager and has been with the company for seven years.

Nick Brown, who will remain managing director, reporting to the trust said: “We decided to transition to an EOT (Employee Ownership Trust) to preserve the culture, drive and motivation which created the company and to work even more closely with our customers and suppliers.

“The EOT puts our people at the heart of the business. We see it as an opportunity to give our clients even better service. Who better to take the company into the future than the employees themselves and they should continue to share in its success.”

The new board members said: “This is a fantastic move by the shareholders. They are demonstrating tremendous faith in the employees and it’s up to us to continue their success. We have the most brilliant team at EDC and we’re sure we speak for everyone when we say we’re up for the challenge.”

EDC has become the latest business to adopt the employee ownership model, which is gaining in popularity with more than 1,500 business in the UK now in the hands of employees.

Consilium Chartered Accountants advised on the transaction.

Partner John Blair added: “We are seeing an increasing number of companies looking at the EOT as a feasible succession option.

“It protects the employment for loyal employees and allows the selling shareholders to exit the business at their own pace. Shaun and Nick were keen to keep the team together and play a key role in the company’s future plans.”

Legal advice was provided by Bellwether Green. April Bingham, head of corporate, said: “It was a pleasure to assist on a project that has been a long time in the planning and so important to the management team, who had a clear picture for the group’s future and wanted to build upon the strong working environment they have created over the years.”