Intec Systems Limited (Intec) have announced that on the 25th March 2022 they transitioned to become an employee-owned business run through an employee ownership trust (EOT).
Stephen Joseph and Tim Malone founded Intec in 1987 to provide bespoke and off-the-shelf software solutions to the private and public sector. Intec has developed an exceptional reputation with its customers and business partners over many years and plans to build upon that success in the future.
The decision to become an employee owned business was driven by the desire to sustain the company’s independence and recognition of the fact that Intec was built upon the hard work and commitment of its employees.
Stephen Joseph said “By widening ownership of the business to its employees Intec is securing the future of the business, including its ethos, values and culture. Tim and I also strongly believe the people best able to run – and indeed own – the business, are those who work in it”.
Technical Director Duncan Cooper and long-term employee Mandy Pawley join the company board. They will work with the newly appointed Trustees to ensure Intec grows and develops for the benefit of all employees. Both Stephen and Tim remain committed to the company and will stay in their existing roles, and the current management team of Stephen, Tim, Mandy and Duncan continues.
Duncan added: “Intec has always been a dynamic business, ready to embrace change – it’s one of the reasons I joined over 25 years ago – it’s part of our DNA and one of the biggest contributors to our success over the years. Now is the time for the next stage of Intec’s journey.
An Employee Ownership Trust enables a company to be acquired by a Trust which exists for the benefit of all the company employees, who will then indirectly own the business. This Trust is set up by the existing owners of Intec and becomes the new majority owner (80%), as part of a longer term succession planning strategy for the existing owners, who will retain a minority stake (20%) in the company. EOTs were established in the Finance Act 2014 to encourage companies to become employee owned. This ownership model is seen by the government as having an enduring ownership structure and tangible employee benefits, resulting in a long-term strategic view and increased business investment, to the benefit of not just the employees, but customers and business partners also.