The entrepreneur who’s giving his firm to its staff
The owner of one of Wales’ leading independent television production firms is giving his company away to staff.
Dylan Huws, managing director of Caernarfon-based Cwmni Da, is turning the £5m-revenue firm into an employee ownership trust.
The move is believed to be a first in UK broadcast industry and is being project-managed by the Wales Co-operative Centre. With legal advice from Geldards, they have drawn up a five-year business plan which will see Mr Huws selling his shares to the trust.
The trust will fund the acquisition of shares though a new borrowing facility, financed from Cwmni Da’s own cash-flows.
The amount that Mr Huws will receive for his shares over the next three years will be based on an independent valuation of the business.
The 50 employees in the busi- ness could, depending on the company’s trading performance, each receive a tax-free dividend of nearly £4,000 a year under the new ownership structure.
The award-winning company is based at a state-of-the-art production centre in the Goleuad building on Victoria Dock.
Founded in 1996, Cwmni Da has a long and successful track record making factual, entertainment, drama and children’s programmes, mainly in the Welsh language for S4C. Their output includes some of the channel’s biggest hits like Fferm Ffactor, Noson Lawen, Deian a Loli, Dim Byd, and Ffit Cymru.
Since last December Mr Huws has been sole owner of the company after fellow directors Neville Hughes and Ifor ap Glyn decided to step down, although both still work closely with the company
A founder member of Cwmni Da, Mr Huws, 59, said: “I was aware that it was now time to prepare the way for the next generation and the next exciting stage in the company’s story. I also wanted to ensure Cwmni Da remained in the hands of staff who have all contributed to its success.”
Mr Huws will remain as managing director for three years while the transition is completed.
As part of the process, head of production finance Bethan Griffiths, who has been a staff member since 2007, and financial consultant Alun Lewis, from BIC Innovation Limited, have already joined Mr Huws on the Cwmni Da board. In addition, three trustees including a staff representative will be appointed to look after employees’ interests.
Mr Huws added: “In recent years, consolidation in the independent production sector has seen several Welsh companies being sold to larger entities. This means, more often than not, that ownership is no longer in Welsh hands.
“It would be easy to sell Cwmni Da and then step away, but I wouldn’t like to think that people that I believe in and respect suddenly lost their jobs because new owners had come in and wanted to do something different.”
“Creating an employee ownership trust feels like it is a perfect fit because I believe passionately that the staff are a key part of the business and that they can all benefit from their efforts.
“Shares will be held on behalf of the workforce in a trust fund and the trading company will need to prove to the trustees that the decisions that they’re making are beneficial to the workforce.
“The workers can earn nearly £4,000 a year tax-free if the trustees decide that the company is in a position to share profits. There are incentives for everybody to make this work.
“The employee ownership trust is a new model for the television industry in the UK and it’s a structure that shows a real commitment to the workforce.”