Gateshead-based Meldrum Construction has transitioned to an Employee-Owned Trust (EOT), allowing every employee a stake in the company’s future.
- The move to an EOT is part of a nationwide trend, with increasing numbers of companies opting for models where employees benefit from company success.
- Dave Meldrum will continue to lead the firm as CEO, ensuring stability and continuity amidst this transition.
- The transition follows Meldrum’s announcement of record profits, underscoring the firm’s robust performance despite industry challenges.
- Operating in diverse sectors, Meldrum demonstrated financial growth, reporting an increase in revenue from £50.05m to £60m.
Gateshead-based Meldrum Construction has embraced a transformative organizational change by becoming an Employee-Owned Trust (EOT). This strategic move not only gives employees a stake in the company’s future, but also aligns with a broader trend seen across the UK, where employee ownership models are gaining prevalence. By transitioning to an EOT, Meldrum ensures retention of its core values, independence, and recognition of its employees’ dedication.
Dave Meldrum, the founder of the company, will sustain his role as CEO, providing guidance and leadership through this transition. Additionally, a board of trustees has been established to further fortify the company’s governance structure. Despite the change in ownership, the current board of directors will remain actively involved in steering the strategic direction and decision-making processes of the firm.
This significant transition comes shortly after Meldrum celebrated record profit figures, which highlights the company’s solid performance in the facing of industry-wide challenges. Meldrum Construction recorded operating profits of £1.94 million in 2023, which is a substantial increase from the previous year’s £1.61 million. This financial success showcases the firm’s capability to thrive and expand, even in difficult circumstances.
Over the last year, Meldrum has not only opened a new office in Cambridgeshire to support its existing teams in Gateshead and Teesside but also grew its revenue significantly from £50.05 million to £60 million. The firm’s expansion into new business areas, notably the launch of Meldrum Fire Engineering, underscores its commitment to innovation and diversified service offerings.
Meldrum Construction’s transition to an EOT is designed to foster a collaborative and motivating work environment that empowers all employees to contribute to and benefit from the company’s success. As CEO Dave Meldrum aptly stated, “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.”
Meldrum Construction’s shift to an Employee-Owned Trust marks a forward-thinking approach to corporate governance, ensuring a sustainable and inclusive future.
