North East construction company Meldrum has announced a major transition to become an Employee Owned Trust.
Dunston-based Meldrum Construction Services Group becomes the latest business in the region to announce Employee Owned Trust (EOT) status – a move which gives everyone in the company a stake in its future. The last few years has seen a sharp increase in appetite for EOTs across the country, with trusts acquiring and holding a controlling interest in a company for the benefit of its employees, delivering the positive effect and results of employee ownership without directly owning or buying shares.
Meldrum, which also has bases in Stockton and Cambridge, said the move was driven by a desire to remain independent, preserve the company’s values, and recognise the hard work, loyalty, and talent of its full team. Dave Meldrum will continue as CEO, and a board of trustees has also been established. The current board of directors will remain in full control of the strategy and business decisions.
The transition comes four months after Meldrum announced record profits, despite huge challenges affecting the wider industry. The business opened its third office in Cambridgeshire earlier this year to support teams in Gateshead and Teesside.
Meldrum, founded by Dave Meldrum in 2001, reported operating profits of £1.94m for 2023, up from £1.61m the year before. Accounts filed in June show Meldrum, which has 220 employees specialising in construction, civils, fabrication, M&E and fire engineering grew turnover from £50.05m to £54.93m during the year. The firm says that turnover has since grown to £60m and it has also launched a new business, Meldrum Fire Engineering.
With the EOT in place, Meldrum said the whole team will have a more significant stake in the company’s success, fostering a rewarding and collaborative environment to deliver better results for clients.
Mr 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. 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.”
