New era announced for Penny Engineering
Penny Engineering is marking a major milestone by transitioning to an Employee Ownership Trust (EOT). This change secures the company’s long-term independence and preserves the values that have guided its success for generations.
The decision reflects the Penny family’s long-standing belief that the business should benefit its employees rather than external shareholders.
Managing Director Tim Penny highlighted the motivation behind the shift, stating:
“Our commitment has always been to the long-term stability of this business and the people who work within it. By transitioning to employee ownership, we are decisively guaranteeing that Penny Engineering’s success, survival and future for the next 100 years will be determined by our team, free from the volatility of external shareholder demands.”
Chairman Robin Penny emphasised the family’s custodianship ethos, adding:
“We were brought up by our dad to believe that we were custodians of the business, not owners. He believed that only people working in the business should benefit from it. This transition brings that principle to life, ensuring that the team who work within Penny, the ones who drive our success, are the ultimate beneficiaries.”
The company has long maintained strong staff retention, with many senior leaders developing their careers within the organisation. Employee ownership builds on this foundation by reinforcing job security and strengthening employee influence across all levels of the business.
The newly established Trustee Board will lead the EOT. Chaired by Robin Penny, it includes employee representatives Jocelyn Cole (General Manager, Goods Lifts) and Sam Dobson (General Manager, Sidetracker), independent trustee David Ball and Finance Director Ashley Holmes. The Board will also form an employee council, giving staff a direct voice on welfare and community matters.
The company completed the transition at a substantial discount to market value, an intentional decision to ensure the business does not face financial strain.
The directors also extended their thanks to professional advisers Shorts Chartered Accountants and Knights Plc for their support throughout the process.
David Robinson, Tax Partner at Shorts, commented: “ Throughout the past 20 years or so that Shorts has been a trusted adviser to Penny Engineering and its stakeholders, it has been clear that employees are at the heart of the business. We look forward to working with the Directors and Trustees in this exciting new chapter.”
This transition marks a significant step forward for one of our town’s longstanding industrial innovators. Penny Engineering will continue to strengthen the region’s engineering sector for decades to come.
