£19m-turnover civil engineering firm transitions to employee ownership

Cheetham Hill Construction Ltd (CHC), a longstanding civil engineering and construction firm, has transitioned to employee ownership. The transaction was facilitated through the establishment of an Employee Ownership Trust (EOT), with 100 per cent of the company’s shares to be held for the benefit of its employees.

CHC is based in Lancashire and was established close to 60 years ago. In its most recent accounts, for the year to July 31 2024, the company reported turnover of around £19 million and pre-tax profit of £935,000, along with a staff headcount of approximately 90 employees.

The Bury-headquartered company operates across the North West and Yorkshire and also has a significant nationwide plant hire operation, with a fleet of more than 100 Volvo and Caterpillar machines.

The transition to an EOT was described as honouring the vision of Managing Director Howard Chamberlain, who has led CHC for close to six decades, and reflecting the company’s commitment to securing its long-term future, maintaining independence and rewarding employee loyalty.

Following the transaction, Howard Chamberlain will continue as a director at the firm, with Contracts Director Mike Goodier moving into the role of Managing Director.

Howard Chamberlain said that the move was about recognising the “team effort” behind the business, adding that the new structure “gives everyone a stake in our future and helps ensure CHC remains an independent, thriving business for years to come."

CHC was advised on the transaction by a team from accountancy and business advisory firm Beever and Struthers, led by Corporate Finance partner Dean Curtis with support from Corporate Finance Manager Fatema Daud and Tax partner Ann Bibby.

Curtis stated that employee ownership is “a powerful and increasingly popular succession solution for businesses that want to preserve their legacy, reward their people, and retain independence”, adding that the structure would help to preserve CHC’s strengths.

The specialist EOT team at law firm Brabners provided legal advice on the deal, led by corporate partner Stephen Hadlow and supported by solicitor Anthony Grogan.

Hadlow commented: "With significant experience advising on EOTs and succession strategies, we understand just how transformative this step can be - not just for the business, but for the people within it. CHC’s transition will help secure its independence, preserve its ethos, and empower its employees as co-owners to drive further success."

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