CONSTRUCTION
CEO - Dave Meldrum ( seated , left ) with the team of advisors .
INVESTING IN OUR FUTURE
Meldrum Group secures future with transition to Employee Owned Trust model
Meldrum Construction Services Group has announced its transition to an Employee Owned Trust ( EOT ).
Meldrum Group made the announcement following the strong financial performance by the group in recent years .
An EOT is a trust that acquires and holds a controlling interest in a company for the benefit of its employees , giving the positive effect and results of employee ownership without directly owning or buying shares .
The current board of directors will remain in full control of the strategy and business decisions .
Dave Meldrum will continue as CEO , and a board of trustees is now also established . The decision to transition to employee ownership was driven by a desire to remain independent , preserve the company ’ s values , and recognise the hard work , loyalty and talent of its team .
This transition marks another significant milestone for Meldrum , which opened its third office in Cambridge earlier this year to support its teams in Gateshead and Teesside .
With the EOT in place , Meldrum ’ s team will have a more significant stake in the company ’ s success , fostering a rewarding and collaborative environment to deliver better results for clients .
Dave Meldrum said : “ By becoming an employee-owned trust , we ’ re securing the future of the company , our culture and , importantly , the future of an amazing group of people .
118 | Tees Business
“ Given the results over the past three financial years , the growth forecasted for this current year and the relationships forged with many clients looking to place repeat business with us ; we believe we are well-placed and equipped to look to the future with great confidence .”
Matthew Walsh , partner at Muckle , who was the lead legal adviser to Dave , said : “ This transition to an EOT demonstrates Dave and the management team ’ s commitment to maintaining yet evolving the excellent organisational culture at Meldrum Group .
“ It also recognises and rewards everyone ’ s contribution to the business ’ s success .
“ This is such an exciting time for all involved , and we are delighted to have played a role in it . I look forward to seeing the business achieve even greater things in years to come .”
Dave added : “ Having advisers that share our enthusiasm and commitment to people is so important .
“ Much like Meldrum Group , Muckle has its people at its centre , and this peoplefocused approach was apparent from the get-go .
“ I always felt like the team had our best interests at heart and they worked very hard to ensure the best outcome for everyone .”
Adrian Dye , partner at Sintons and head of the firm ’ s corporate department , explained how Sintons advised Meldrum
Group and the trustees on the structure and setting up the EOT .
Adrian said : “ Sintons has advised Meldrum Group for more than 10 years now and , as a longstanding client , we have seen how the business puts its team members at the heart of its operations .
“ As well as setting up the EOT , Sintons Trust Corporation will act as a trustee , providing ongoing support as they begin this new chapter in Meldrum ’ s story .”
Azets provided specialist advice to the Meldrum Group and the EOT . Advisers involved in the transaction included corporate finance manager Oliver Williams and associate director of transaction tax Adrienne Paterson .
Oliver said : “ It was an absolute pleasure to have provided support throughout the transaction and we ’ re excited to see the business go from strength to strength under EOT ownership .
“ Dave ’ s desire to do the right thing by the business and its staff was clear in our deal-structuring discussions and the EOT will preserve the company ’ s core values and focus on its people .”
Looking ahead , the company says it plans to continue its growth , focusing on innovation and quality .
Find out more at meldrumcs . com