Flo-Mech Completes Transition To 100% Employee Ownership

Flo-Mech Ltd has completed its transition to full employee ownership, following the transfer of all company shares into the Flo-Mech Employee Ownership Trust. The transaction was completed on 18 November 2025, marking a significant structural change for the business after more than five decades of operation.

The shares were transferred by the Elderkin family alongside other shareholders, resulting in the company becoming 100% employee-owned. According to the company, the move reflects a long-term commitment to preserving Flo-Mech’s culture, values, and established way of working, rather than pursuing an outright sale to external investors.

Employees were formally informed of the change on 19 December 2025, after all legal and structural details had been finalised. The announcement was made during an off-site event led by the company’s directors and Chairman Alan Elderkin, where the rationale behind the decision was outlined to staff.

Management explained that although the company had received significant offers to sell, this option was ultimately rejected. The decision to move to an employee ownership model was positioned as a means of safeguarding the company’s long-standing family traditions, its people-focused operating philosophy, and the relationships built with customers and partners over more than 50 years of activity.

Flo-Mech stated that employee ownership was viewed as the most effective way to protect these values over the long term, ensuring continuity for both employees and external stakeholders. The company emphasized that its workforce, customer base, and partner relationships remain central to its identity and future direction.

Under the new ownership structure, the existing Directors and management team will remain in place and continue to lead the business. The company said this continuity is intended to support stability while enabling future growth opportunities under the employee-owned model.

The move places Flo-Mech among a growing number of UK businesses adopting employee ownership structures as an alternative to traditional sale or succession routes, particularly for privately held and family-founded companies seeking long-term independence.