North East construction group moves to employee ownership
Mon, 14 Oct 2024 | BUSINESS SALE
Gateshead-based Meldrum Construction Services Group has transitioned to employee ownership. The firm, which was founded in 2001, will now be owned by its 220 employees through an Employee Ownership Trust.
Meldrum, which provides services in the building, civil engineering, construction, fabrication, facilities and fire engineering sectors operates from three offices in Gateshead, Stockton-on-Tees and most recently from earlier this year in Cambridge.
Founder Dave Meldrum will continue in his role of chief executive following the move with the current board of directors remaining in charge of company strategy and business decisions.
The group said the decision to move 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 staff.
"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,” Dave Meldrum said. "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."
Despite uncertainty in the construction sector given recent rises in materials and labour costs as well as skills shortages, supply chain squeezes and a volatile economy, Melton has performed strongly. This has been helped, it said, by investing in training and staff wages.
According to its most recent accounts filed to Companies House for the year to December 31, 2023, it posted a turnover of £55 million, up from £50 million in 2022. Since then turnover has reportedly increased to £60 million.
Pre-tax profit came in at £1.9million, up from £1.5 million in the previous year. It said that it has an orders pipeline of £520 million.
Find out more about the growth of EOTs in our recent dedicated insight on Employee Ownership Trusts in the UK
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