Talk Training, a Rhondda Cynon Taf based Apprenticeship delivery provider established in 1995, has transitioned into an Employee Ownership Trust (EOT). Jon Hughes, Alison Anthony and Steve Evans, the exiting shareholders of Talk Training Solutions Ltd, the parent company of Talk Training and current directors, have all worked at Talk training for over 20 years.
The directors will remain involved in the business to varying degrees and the three Trustee directors will initially include one of the exiting shareholders of Talk Training Solutions, Talk Training’s Sales Manager, Tanya Parmee, and Talk Training’s Operations Manager, Lisa Harris. A process is currently in place to appoint an independent Trustee Director.
Alison, who joined Talk training in 2000 said “my reason for selling the shares to the employees was to safeguard the longevity of the business and the continuing employment of existing staff. Also, by completing the EOT the business remains in the local community where it currently employs 32 staff and contributes to other local businesses. Succession planning is always difficult but by closely working with the management team, appropriate structures have been put in place. I recognise that by completing an EOT the company will have a dedicated team that will continue to train staff locally as well as throughout Wales.”
“I believe we have a fantastic team who care about our reputation and the training we deliver. This team will ensure Talk training reaches its growth potential, will have a great future and will secure additional jobs to ensure Talk training is the provider of choice.
“Talk training has for many years supported local charities, individuals and the wider community by sponsorships, donations and fundraising events and will continue to do so as an EOT organisation”.
The directors have been delighted to work with Cwmpas through the transaction process and was impressed with their support and EOT expertise. They advised the exiting shareholders and Trustee Directors and presented to all our employees to ensure they have a good understanding of what an EOT means to them.
Jon Hughes, Talk Training’s Managing Director, said “The formation of the Employee Ownership Trust is a major step change in the development of the company, and one of the most exciting since its incorporation over twenty-six years ago. It will allow our staff to feel even more connected to the company and they will have a real stake in the success of the business. They can all take pride in knowing that they are shareholders and building for the future.”
The Welsh Government have recently announced that it has committed £148.6m to apprenticeship delivery for the 2022/23 contract year, with the goal of reaching 125,000 all-age apprenticeships in 2026/27. Talk Training under its new EOT ownership is committed to being a significant contributor to this goal and upskilling the workforce of Wales.
Steve Evans said, “I echo the comments and sentiments of Alison and Jon and would like to thank all the professional advisors who assisted with the EOT process, which I believe is the perfect fit for the future of Talk Training. The EOT will provide a basis for increased employee participation and recognition, stability and future growth opportunities and a strong platform for our learners to benefit from a fulfilling and rewarding learning experience”.
The directors would also like to thank Berry Smith LLP for their professionalism and legal advice throughout the EOT process and the support of Gambit Corporate Finance LLP in determining a market value for the transaction and the assistance and expertise of Azets in obtaining the HMRC approval for the EOT Trust Deed and their taxation advice.
Abbie Baker who led the Berry Smith team, which advised upon the legal aspects of the EOT transaction said “We are delighted to have worked with the former shareholders of Talk Training to help implement their vision of transferring the ownership of the business to its employees. Berry Smith has worked with Talk Training for over 25 years and throughout that period, the employees of Talk Training have been at the heart of its business. The new EOT ownership structure will help ensure that the Company is well placed for the next stage of its development.”
Michael Dunn, Manager at Gambit Corporate Finance commented: “We were delighted to advise Jon, Alison and Steve on strategic succession options and on establishing a valuation and structure for the EOT and delivering an outcome which satisfies all stakeholders’ requirements. EOTs are becoming an increasingly common vehicle to effect transition of ownership and succession strategies, particularly in the training sector.
Talk Training is a market leader in the delivery of Apprenticeships in Wales and an EOT is the optimum structure in protecting the legacy, continued success and longevity of the business for its learners and the local community. It also recognises and rewards the significant contribution made by the highly committed and experienced employee base providing an incentive for them to drive the business forward. We wish the shareholders, the business and the employees every future success.”
Leighton Reed, tax partner at Azets, said “I am absolutely delighted for the team at Talk Training. An Employee Ownership Trust is the ideal vehicle to preserve the future of the company and give the employees a real sense of ownership in a tax efficient manner.”
Talk Training is based at Parc Nantgarw, approximately 8 miles north of Cardiff and has modern training facilities and resources to meet the requirements of its learners, is accredited to the BSI 9001:2015 Quality Standard, Investors In People and the Green Dragon Environmental Standard. Talk Training works in partnership with ACT, Wales’ largest private training provider for the delivery of Welsh Government funded apprenticeship programmes. Talk Training offers qualifications from levels 2 to 5 and can also offer Institute of Leadership and Management training at level 7. The qualifications on offer span a diverse range of disciplines and are all accredited by recognised awarding bodies including City and Guilds and the Institute of Leadership and Management; with learners employed in both private and public sector organisations. If you believe Talk Training could assist your organisation with training and staff development requirements, then please contact us.