NEC joins growing number of businesses which are becoming employee ownership trusts

NEC said its decision to gain EOT status builds on the legacy of Newburgh Engineering Company, which was founded in 1939 by Isaac Middleton, the grandfather of the company’s current chairman, Vince Middleton.

Mr Middleton, said “As a third-generation family business our people have always been an important part of our company and the decision to become an employee ownership trust rewards our team and gives them a say in the future development of the business.”

David Greenan, the sales director, said: “The move to being an employee ownership trust is part of our succession planning strategy to secure the future of the business.

"I have been with the business for 48 years, having started as an apprentice in 1974. I am planning to retire in the next couple of years and so we are bringing through people to lead the business.”

As part of the process of becoming an EOT the company advertised for a member of staff to apply to join the board of directors. Following an interview process, the 25-year-old apprentice trained engineer, Matt Keeley was appointed to the board in January 2022.

The former MP, Richard Caborn, is chair of the board of trustees. Mr Caborn trained as an engineer, and maintained an involvement with the sector throughout his time as an MP.

Chris and Samantha Sellars from Hentons Corporate Finance and Hentons Legal, who provided advice in connection with the move to an EOT, said :“We were delighted to work with the management team on the transition to employee ownership, the business has an outstanding legacy of engineering excellence, and we are sure this change to an EOT will support a long and successful future.”

There are now more than 1,000 employee-owned businesses in the UK, with the sector more than doubling in size in the past three years.

A spokesman said: “The fast pace of growth among businesses has taken off with the use of the employee ownership trust, which was introduced by the Government in 2014 to encourage long-term employee ownership, and one in every 20 private company sales is now to an EOT, with NEC joining a network of EOTs in the South Yorkshire that include Gripple, HLM Architects and Airmaster.”

James de le Vingne, Chief Executive of the Employee Ownership Association (EOA), said: “Putting power into the hands of those who know the business best and empowering and enabling them with authority and resources is proven to deliver.

"Employee ownership roots businesses in their local area and preserves jobs, preventing businesses from being sold to the highest bidder who may strip the assets or move the business elsewhere.”