Meldrum Construction transitions to an Employee Owned Trust, ensuring long-term company stability.
- The decision marks a significant shift, giving employees a substantial stake in the business.
- Meldrum has witnessed a growth in profits and expansion in recent years, prompting this change.
- The move supports independence and honours the commitment and skills of its workforce.
- CEO Dave Meldrum remains at the helm, with strategic direction maintained by the existing board.
North East construction company Meldrum Construction has taken a pivotal step by transitioning into an Employee Owned Trust (EOT). This strategic move ensures that all employees now hold a stake in the company, thus fostering a harmonious and collaborative working environment aimed at future growth and stability.
In recent years, there has been a notable trend across the nation, including in firms like Meldrum, towards adopting EOTs. These trusts acquire a controlling interest in businesses to benefit employees without necessitating direct share ownership. By taking this approach, Meldrum has embraced a model that champions employee involvement while securing its foundational values.
CEO Dave Meldrum articulated that the decision arose from a desire to maintain the company’s independence while simultaneously recognising the immense contributions of his dedicated team. The move comes as Meldrum Construction reports unprecedented profits and continues to expand its operational reach, unveiling its third office in Cambridgeshire.
Financially, Meldrum Construction has demonstrated robust performance. The company reported operating profits of £1.94 million for 2023, up from £1.61 million in the previous year, alongside a remarkable increase in turnover from £50.05 million to £54.93 million. Recent figures suggest turnover has reached £60 million, further indicating the company’s upward trajectory.
CEO Dave Meldrum emphasised that the transition to an EOT secures not just the future of the company, but also the cultural and professional ethos that characterises the workforce. “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,” he stated.
The board of directors remains in charge of strategic decisions, ensuring organisational stability while fostering a rewarding and inclusive environment. This move is expected to enhance client outcomes, with the company well-positioned to leverage relationships with long-standing clients. With this new structure, the company anticipates a rise in employee engagement and satisfaction, propelling its success further.
Meldrum Construction’s transition to employee ownership reflects a forward-thinking approach, securing its future while honouring its workforce’s contributions.
