Capenhurst-based power engineering specialist EA Technology has recorded its most successful year since the company became independent in 1997, during which it has completed a radical re-distribution of shares to give majority ownership of the company to its 95 employees:
MD Robert Davis said: "Our improved commercial success is a direct result of the share re-distribution scheme, which has taken place over three years and has placed ownership in the hands of the people who create the company's wealth. This is especially important for a company like EA Technology, where much of our value lies in the skills and knowledge of individuals.
"Shared ownership is proving a fantastic incentive for everyone involved and has put a new spring in our step."
Re-written constitution:
EA Technology was originally formed in 1966 as the research and development centre for the then nationalised UK electricity industry. It gained independence in 1997 through a management and employee buyout.
In the last three years, the company has re-written its constitution to ensure a more even distribution of shares, and as a result, shares have been bought back from ex-employees and re-sold to existing staff.
"As a result of this process, we are now a largely employee-owned company, with 87% of staff owning shares", said Robert Davis.
"The model we are following has been described as 'pragmatic socialism' and it is certainly paying dividends in commercial terms. Since the change, people feel more motivated and committed, which translates into better, more innovative products and customer service", he concluded.
Many of EA Technology's power engineering solutions have been adopted as standard by the UK electricity industry, the company claims. It is also achieving growing success in new markets, from Europe and North America to the Middle East and Far East.