CIOB chartered company member Gilbert-Ash has announced the transition to an employee ownership trust (EOT).
The Belfast-based construction and fit-out company has been the main contractor at several important UK landmarks, including the National Portrait Gallery, Tate Liverpool and the Everyman Theatre.
In 2023, it reported its highest-ever turnover, at £267m.
Gilbert-Ash’s managing director, Ray Hutchinson, said the decision followed “lengthy and careful consideration” by the directors and shareholders who concluded the time was right for the company to transition its ownership structure.
He said: “The recent success of Gilbert-Ash has, in many ways, been built upon the fact that we have been an employee-owned company for more than 50 years.
“Moving to an EOT embraces that fact further and replaces the existing narrow shareholding with a structure that is designed to benefit all employees in perpetuity.
“We are confident that the transition to an EOT is firmly in the best interests of our people, the future success of our business and retains our roots as an employee-owned company.”
Employee ownership trusts
EOTs are an initiative launched by the government in 2014 in which a company’s employees own, or have the right to own, shares.
EOTs do not involve direct share ownership by employees. Instead, a controlling interest in the company is transferred to an all-employee trust, which is then held for the benefit of employees.
These trusts have increased in popularity in recent years, particularly among construction businesses. Examples of contractors that have adopted the EOT model include Buckingham Group, Readie, John F Hunt and Michael J Lonsdale.
Hutchinson continued: “As an employee-owned company we have seen the benefits of improved loyalty, productivity and innovation from our people, and we believe moving to an EOT will enhance these values even more.
“This restructure will give our people a greater say in the future growth and direction of Gilbert-Ash. Following expert external advice from our adviser PwC, which helped with all aspects, including the overall design and structure, EOT best practice and principles, tax, legal, and valuation aspects, this new model will equip us to face the future with confidence.”
