Electronics manufacturer moves to employee ownership

Contract electronics manufacturer Tioga has transferred ownership of the business to its staff, following a seven-figure funding package.

The Derby-based firm, which works with the energy, medical and aerospace sectors, has implemented an Employee Ownership Trust (EOT), with Warwick Adams, who established the company in 1982, taking up the position of chairman.

The deal gives Tioga’s workforce of around 150 people a collective stake in the company and preserves its independence.

It will also allow employees to receive future, tax efficient, bonus payments.

The company, which specialises in electronic assembly and complete product manufacture, said the decision to sell the business to its staff was made with the aim of safeguarding jobs and ensuring a smooth transition for the team, suppliers, stakeholders and customers.

The deal was supported by a seven-figure funding package from HSBC UK.

Dean Hallam, group chief financial officer at Tioga, said: “With HSBC UK’s support, we have been able to complete the EOT process quickly and efficiently.

“The bank’s team guided us from start to finish and fully understood the need for a swift turnaround.

“We’re delighted that Tioga’s continued growth will now further benefit all staff.”

Daniel Williams, relationship director at HSBC UK, said: “We’re committed to supporting and empowering a diverse range of businesses and look forward to seeing Tioga carve out a bold new path as an EOT.”