Creative marketing services specialist – Clone Media established in 2010 by co-founders – Joel Dalton and Simon Drury in Basingstoke, UK has opted to transition to an Employee Ownership Trust (EOT).
The transition, which began earlier this month, will see Clone’s employees receive annual tax-free bonuses when the business hits its performance targets, with additional profit-sharing opportunities opening up once the founders have been bought out.
“We’ve built something special and wanted to ensure that it continues long after we step back,” he explained, Dalton who also stated that the shareholders had explored various potential exit options but had concerns over the potential for job losses and the loss of the company’s culture under an external buyer. Clone said the EOT structure would ensure decisions remain in the best interests of employees rather than external shareholders.
With turnover of nearly £7m this year, up from just over £6m last year, Clone currently employs 22 staff members and works with a range of clients, including retail, education, tech, and healthcare, and counts leading brands among its customer base. Its services include creative campaigns, merchandise, exhibition stands, packaging, print management services, and fulfilment and distribution. The firm is ISO 9001 and 27001 certified, Carbon Neutral Britain certified, and has a Great Place to Work accreditation.
As part of the process, Drury will become CEO and run the firm day-to-day alongside COO – Nicky Perkins and CFO – Simon Hersh. Dalton is moving into a non-executive director role. “Full transition is estimated to take six years, although we’re aiming to complete in half that – we’ve been very conservative with the forecasts,” he added. “Also, every employee who’s been here for over six months will benefit from a £3,600 tax-free bonus from year one. Key staff are also being incentivised through an EMI share scheme.” He described the EOT structure as a great exit vehicle and said more business owners needed to know and adopt it.
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