An Okehampton-based fuel supplier recently  transferred ownership of the business to its employees as the existing shareholders prepare to leave the company.

The directors of Moorland Fuels have transferred one hundred percent of company shares to the workforce as part of a move towards establishing an Employee Ownership Trust (EOT), similar to that of the John Lewis Partnership and home entertainment retailer, Richer Sounds.

Group chairman Chris Bingham said: ‘I’ve been considering the option of employee ownership for quite some time and when we looked into the benefits and alternatives available to us, an EOT was the obvious choice.

‘As successful and ever-growing businesses, we could have sold to a third party, however, I place great value on my team and wanted to be able to reward the people who have grown the businesses to where they are today.

‘The response from our shareholders and our staff has been extremely positive and there has been an increase in productivity and motivation which I’m sure will help to drive future growth. There’s no doubt in my mind, that creating an employee-led business is a good thing.’

Under the new set up employees will have a financial stake in the business as company shareholders and will be able to have a greater say in how the company is run.

The hope is that the company will become more inclusive and transparent under the new leadership system and will attract a greater number of talented people to the company.

Abby Turner, sales and marketing director at Moorland Fuels, said: ‘I believe this EOT will bring considerable rewards for our staff and the company going forward. There are many benefits of an EOT to employees such as annual bonusses and improved engagement, but not only this, employees actually get an indirect stake in the company. It provides a bright future for the business, as well as our community and I’m excited to see our period of growth continue.

‘Statistics demonstrate that employee-owned businesses see improved productivity powered by the increased personal endeavour and discretional efforts of employees acting with a greater common purpose.Employees are more engaged due to a more inclusive, transparent and effective models of corporate governance which better involve, motivate and financially reward individuals.’

Moorland Fuels, which has been in operation for over 15 years, is a family-run business that provides fuel delivery services and wider solutions to homes, farms and businesses. The company not only offers a range of fuels, but also lubricants and oil tanks for commercial, agricultural and domestic use

The company has bases in Okehampton and Plymouth, primarily serving West Devon and East Cornwall though its range also includes the west edge of Exeter.

The Government set up the EOT scheme in 2014 to encourage long-term employee ownership and it is now reported to be one of the fastest-growing business succession solutions in the UK, where there are now more than 800 employee-owned businesses – with more than 300 of those having transitioned since 2020.