Jesmond Engineering Ltd has been trading for more than 20 years
An established engineering design consultancy based on the north bank of the Humber has become employee owner. Jesmond Engineering, which is based in Brough, is now in the hands of hardworking staff following the decision by its founder.
Simon Walker set up the business in 2004, growing it to take on highly complex engineering challenges for safety-critical sectors including aerospace, defence and rail. The 21 year-old firm has transitioned to an employee ownership trust (EOT) model that will allow staff to share in its profits.
Team member Patrick Kelly, a mechanical engineer at Jesmond has been elected employee representative. He will represent the interests of employees in a 25-strong engineering team including consultants.
The firm provides engineering and software services to its client base including customers at home and overseas. It is well known in the aerospace sector and is said to have grown a reputation for its work in biotechnology, chemicals and renewable energy.
Mr Walker said the move to an EOT marked an important milestone. He added: “From day one, nearly 21 years ago, we have been a highly motivated and dedicated team, so the democratic EOT model is ideal as it bolsters and rewards the commitment shown by all. All staff are now participants in a structure that helps to secure the future of the company of which we are proud.”
Mr Kelly said that he felt privileged to have been chosen as the employee representative. He said: “Jesmond supports clients to innovate through our breadth of industry experience and diverse engineering skills. Our teamwork has been vital to the successful outcome of client projects, and we all believe that the EOT structure will build on this, as well as giving us all the opportunity to benefit from Jesmond’s success.”
Jesmond is said to have world class expertise in computational fluid dynamics and other computer-based mathematical modelling techniques such as structural and mechanical analysis and finite element modelling. Its processes can be used to model the flows of gases and liquids, and the transfer of heat, whilst its structural analysis methods simulate the effects of impact, vibration, shock loading, fatigue, and crack growth.
Among the firm’s big name customers are defence contractors such as Leonardo, BAE Systems and Airbus. It’s expertise has been used to calculate everything from the flow of water around a ship’s hull, to natural ventilation systems.
EOTs are a Government initiative that aims to give business owners the opportunity to sell their shares to an employee owned trust free from capital gains tax. The model means employees do not directly own shares in the business but a controlling interest in the company is transferred to the trust, which is held in benefit for workers.
There are now around 2,250 UK companies that have switched to an EOT, with benefits around succession planning, employee engagement and business performance. Jesmond Engineering Trustees Ltd was incorporated earlier this year.