Welsh business ITEC Training Solutions has converted to employee ownership to secure its long-term future.
Founded in 1982, ITEC employs 140 staff who provide training and employability services for those most affected by the emerging skills gap.
The business, which now belongs to an employee trust, has grown from £2m turnover in 2007 to a group turnover of £14.3m in 2018. Staff numbers also increased from 35 in 2007 to 140 in 2019.
During the transition process, the enterprise had support from the Social Business Wales project. Funded by the European Regional Development Fund and Welsh Government and delivered by the Wales Co-operative Centre, the project works with a broad range of established client businesses across the nation, looking at employee, co-operative, mutual or community shares-type ownership.
Co-owner Steve Doyle said: “Having built the business to where it was we did not want it to become part of just another large corporate or college. The real challenge was finding a suitable succession plan for the business.
“We had considered selling and received a number of offers over the last few years but that did not sit comfortably with us so we got in touch with Social Business Wales to discuss employee ownership options.”
Since 1994, Wales Co-operative Centre has worked with over 50 companies in their transition to employee ownership, including Tower Colliery, The Urbanists, Tregroes Waffles, Cwmni Da, ETL Solutions, Aber Instruments and Gateway Dental Practice.
Paul Cantrill, business advisor at Social Business Wales, said: “I am delighted to have been a part of helping ITEC become an employee-owned business. Succession planning is a huge part of what we do at the Wales Co-operative Centre, and it’s great to see such a successful business be able to secure the future for the business and the employees.”
ITEC has delivered training for a number of clients, including the Welsh government, from apprenticeships and youth traineeships to adult employability programmes. Their current Welsh government contract is worth £13m per annum.
Mr Doyle added: “Going employee-owned gave us the opportunity to maintain our independence whilst continuing to grow the brand. I expect it to improve efficiency and facilitate further growth by being able to attract high calibre staff and offering them what no other training company currently offers.”
The business is looking to expand in England where it already delivers apprenticeships. It plans to deliver commercial training through a London based subsidiary.
“We have a very loyal and highly motivated team who we hope will see real benefit from employee ownership,” said Mr Doyle. “I would advise any companies considering employee ownership to give it serious consideration.
“It may not be the solution for every business but if you have a good team to take the business forward, it is a great vehicle.”
