Employee ownership protects Edenstone’s legacy

Edenstone has become employee-owned in a move that rewards staff loyalty and safeguards the legacy of the business.

To reflect the shift, while offering continuity, the business will now be known as Edenstone Partnership. The transition to an Employee Ownership Trust (EOT) took place on October 27, securing a long-term future for the organisation.

Headquartered in Magor, Edenstone was founded by Jeff and Martin Taylor in 2003 and now employs around 100 people.

Longevity and loyalty

Executive chairman Martin Taylor said: “As business owners, we’ve worked hard to build value and to do the right thing for our employees and partners. Going forward, we wanted to ensure we could preserve the business and its strengths, focused on delivering quality homes to our customers, while providing a proven and equitable platform for its future security.

“This decision is about far more than ownership. It’s about ensuring the business remains true to the values, culture and people that have shaped it for approaching 25 years. Although a third-party sale may have been more financially attractive, it can often come at the expense of a company’s identity and workforce. Employee ownership allows us to honour our legacy, reward the loyalty and commitment of our employees, and create a platform for genuine long-term value creation rather than chasing short-term targets.

“I’m excited to take on the challenge of being executive chairman in a business that is 100% employee owned. We hope this will enable us to continue delivering much-needed homes and supporting local jobs for many more decades to come.”

Around 3,000 businesses in the UK are employee-owned, including more than 100 in Wales.  Construction is the fastest-growing sector for employee ownership, up 6,580% between 2014 and 2025. John Lewis Partnerships is perhaps the best known EOT.

Research by the Employee Ownership Association found employee-owned businesses were more productive, invested more in training, offered higher wages and more in bonuses, with higher employee motivation after becoming employee-owned and higher job satisfaction.

“Becoming employee-owned offers continuity. It’s the same business, team and approach. It removes the prospect of a future sale or break-up and lets the business plan over a much longer horizon,” Martin added.

“The transition should give our customers and partners added peace of mind as they can trust that everyone they deal with at Edenstone has a stake in doing the right thing for the future success of the business. “We intend to continue looking for opportunities to grow the business, where and when long-term sustainable opportunities present themselves.”

Edenstone currently builds between 300-400 new homes annually, on 12 developments across South Wales and South-West England. It is increasingly focused on bringing forward housing projects with partners including the affordable housing providers and the private rented sector.

Becoming an employee-owned trust (EOT)

Edenstone’s transition to an employee-owned trust was managed by Hafren Consulting LLP. Randall Edwards, senior partner at Hafren, led the purchase on behalf of the trust, with his involvement with Edenstone continuing as a member of the trustee board.

Randall said: “I believe Edenstone has all the ingredients needed to become a highly successful employee-owned business. The selling shareholders were highly motivated to move to an ownership structure which will allow the business to thrive over the long-term, operating within the stability offered by an EOT ownership structure.”

The trust holds 100% of the shares of the Edenstone Group for the benefit of all employees. Its trustee board meets at least quarterly to make sure the company is run in the long-term interests of employees and that the trust’s rules are complied with.

The Edenstone board continues to run the business and make operational and commercial decisions. The trust, as 100% owner, oversees the board on behalf of all employees. Employees are represented on the trustee board by an employee representative director.

Meet the trustees

The trustee board has five directors:

• Independent trustee Randall Edwards
• Independent trustee Alan Whiteley
• Edenstone founder and executive chairman Martin Taylor
• Edenstone finance director Stuart Rodden
• Edenstone operations director Chris Edge as employee representative director

Chris said: “Having been part of the Edenstone team for almost a decade, I have first-hand experience of the dedication, expertise and care that people bring to their roles every day. Becoming employee-owned is a powerful recognition of the team’s contribution to the success of the business and demonstrates the trust being placed in us to help shape its future. I’m proud to represent my colleagues on the board of trustees and will strive to protect the values, culture and long-term vision that have made this business what it is today.”

The first employee representative is appointed by the Edenstone board for up to three years; after that the role is elected by employees by annual ballot.

For more information about Edenstone see edenstonehomes.com.