A New Era: Penny Engineering Transitions to an Employee Ownership Trust
We’re thrilled to announce a historic milestone for Penny Engineering: the company has officially transitioned into an Employee Ownership Trust (EOT).
This landmark decision, formally announced to all staff on Thursday 20th November 2025, is a testament to our enduring commitment to long-term stability, our core values, and, most importantly, to our talented employees.
The move ensures that Penny Engineering remains an independent, UK-based entity, securing our future for generations to come.
The Philosophy Behind the Change
The shift to an EOT is rooted in a deep, multi-generational family philosophy: that the business should be run for the benefit of those who work within it, not for external shareholders.
Tim Penny, Managing Director, emphasised the long-term view:
“Our commitment has always been to the long-term stability of this business and the brilliant people who work within it. By transitioning to employee ownership, we are decisively guaranteeing that Penny Engineering’s success, survival, and future for the next 100 years will be determined by our workforce, free from the volatility of external shareholder demands.”
This principle was originally instilled by the previous generation, as Chairman of the Board, Robin Penny explained:
“We were brought up by our dad to believe that we were custodians of the business, not owners. He believed that only people working in the business should benefit from it. This transition brings that foundational principle to life, ensuring that the staff who drive our success are the ultimate beneficiaries.”
The Trustee Board
To ensure the EOT functions effectively and holds the operating company accountable to its employees, a Trustee Board has been established. This board provides essential support, challenge, and oversight to the operating company’s Board of Directors.
The Trustee Board is comprised of a diverse group of individuals:
- Chairman of the Board: Robin Penny
- Employee Representatives: Jocelyn Cole (General Manager, Goods Lifts) and Sam Dobson (General Manager, Sidetracker)
- Independent Trustee: David Ball
- Finance Director: Ashley Holmes
There is currently some overlap with the current operating Board of Directors to ensure seamless continuity during this transition period.
A Sustainable Future
While EOTs are a common mechanism for achieving tax-free exits, Penny Engineering’s approach was distinctly different and not driven by maximising personal financial gain. The transition was executed at a significant discount to the company’s value specifically to avoid placing any financial pressure on the business.
The directors extended their sincere thanks to their professional advisors: Shorts Chartered Accountants and Knights Plc, who supported the company throughout this complex process.
This transition marks an exciting new chapter for Penny Engineering, solidifying the legacy built over decades. The combination of our deeply ingrained values, a stable financial structure, and a highly engaged, invested workforce ensures that Penny Engineering remains an innovative and reliable partner well into the future.
FAQs about the Changes
An EOT is a special type of trust set up to hold the majority of a company's shares on behalf of its employees. Essentially, the employees collectively own the business via the Trust, ensuring that the company is run for their benefit.
The main reason is to secure the long-term future and independence of the business, protecting it from external influence or the need for a trade sale. It is a direct continuation of the family's ‘custodian’ philosophy, ensuring that the people who work at Penny Engineering are the primary beneficiaries of its success.
Employees gain a direct voice in certain company matters through the new Employee Council. The EOT structure ensures that the business is focussed on long-term sustainability rather than short-term shareholder returns, which benefits every member of the team.
The company is owned by the Employee Ownership Trust (EOT) on behalf of all current and future employees. The employees are the ultimate beneficiaries.
The Trustee Board is responsible for the overall governance of the EOT. Its main job is to ensure the company is always being run in the best interests of the employees. It is made up of:
- Robin Penny (Chair of the Board)
- Jocelyn Cole and Sam Dobson (Employee Representatives)
- David Ball (Independent Trustee)
- Ashley Holmes (Finance Director)
No. The transition was executed at a substantial discount to the company's value. This was a deliberate choice by the previous owners to ensure the company remains financially stable and under no pressure from the transition.